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SAN FRANCISCO 
AIRPORTS COMMISSION 




MINUTES 



DOCUMENTS DEPT. 

MAR 181987 

SAN ekANCISCO 
PUBLIC LIBRARY 



JANUARY 6, 19 87 



DIANNE FEINSTEIN, MAYOR 

COMMISSIONERS 

MORRIS BERNSTEIN 

President 

J. EDWARD FLEISHELL 

Vice-President 

DR. Z.L GOOSBY 

ATHENA TSOUGARAKIS 

DON RICHARDS STEPHENS 



LOUIS A.TURPEN 

Director of Airports 

San Francisco International Airport 
oa.i rrancisco, California 94128 



Index 

of the Minutes 

Airports Commission 

January 6, 1987 



CALENDAR 


AGENDA 




SECTION 


ITEM 


TITLE 


A. 




CALL TO ORDER: 


B. 




ROLL CALL: 


C. 




ANNOUNCEMENT B 


D. 




ITEMS INITIATE 



RESOLUTION 
NUMBER 



PAGE 



Adjust Clock in Room 282 



ITEMS RELATING TO ADMINISTRATION, 
OPERATIONS & MAINTENANCE: 

1. Authorizing Agreement for 
Parking/Transportation Manage- 
ment Services 

2. San Bruno and South San 
Francisco School and Home 
Insulation, FY 86-87/88 87-0001 

3. Identification System 87-0002 

4. Resolution to Accept Gift of 
Tank Trailer from Shell Oil 
Company - Gift to San Francisco 
International Airport 87-0003 

5. $100,000 Supplemental Appropri- 
ation for Legal Services 87-0004 

6. Resolution Approving Signage - 
Associated Limousines of San 
Francisco 87-0005 



4-5 

5 

5 

6 



CONSENT CALENDAR OF ROUTINE 
ADMINISTRATIVE MATTERS: 

7. Retirement Resolution: 
Theodore Kauser 

8. Annual Renewal of Four 
Professional Services 
Contracts for the South 
Terminal Reconstruction 
Program. Renewal Extends 
Each Contract for 12 Months 
to December 31 , 1987, with 
No Change in Contracts Costs 



87-0006 



87-0007 
87-0008 
87-0009 
87-0010 



4 



ONO JRS 

i2/96 I 



9. Hertz Rent Credit - Construction 
of Traveler's Aid Booth in the 
South Terminal 87-0011 6-7 



G. PUBLIC HEARING: 

10. Airports Commission Budget for 

Fiscal Year 1987/88 7-9 



CORRESPONDENCE: 



ADJOURNMENT TO GO INTO 
CLOSED SESSION: 



Minutes, January 6, 1987, Page 2 



Minutes 

of the 

Airports Commission Meeting 

January 6, 1987 



A. CALL TO ORDER: 

The regular meeting of the Airports Commission was called to order at 
9:00 A.M. in Room 282, City Hall, San Francisco, Ca. 



ROLL CALL: 
Present 

Absent: 



Morris Bernstein, President 

J. Edward Fleishell, Vice President 

Athena Tsougarakis 

Don Richards Stephens 

Z.L. Goosby 



ANNOUNCEMENT BY SECRETARY: In accordance with Section 54957.1 of 

the Brown Act, Jean Caramatti , 
Commission Secretary, announced 
unanimous adoption of resolution no. 
86-0281 authorizing the Director to 
retain the law firm of Dobbs, Berger, 
Molinari, Casalnuevo, Vannelli & Nadel 
for the purpose of representing the 
City and County of San Francisco in 
matters regarding SFO Airporter at the 
closed session of December 16, 1986. 

Commissioner Stephens said that he thought there was a dollar limit to the 
agreement. 

Commissioner Fleishell responded that there was a $10,000 limit. He said 
that the money will be applicable only through the motion of reconsidera- 
tion, a motion for re-trial and the hearing on that motion. 



D. ITEMS INITIATED BY COMMISSIONERS: 

Commissioner Fleishell asked that the clock in the meeting room be 
adjusted to reflect the correct time. 



Minutes, January 6, 1987, Page 3 



ITEMS RELATING TO ADMINISTRATION, OPERATIONS & MAINTENANCE: 

The Commission voted down the following item by a 3-1 vote. Commissioner 
Tsougarakis cast the sole vote for approval. 

1. Authorizing Agreement for Parking/Transportation Management Services 

Authorizes Director to enter into 
agreement with RIDES for Bay Area 
Commuters, Inc. to provide San 
Francisco International Airport with 
employee-oriented Par king /Transporta- 
tion Management services. 

Mr. Turpen said that the intent of the item was to encourage 
carpooling. He said that the Commission had some questions at the 
last meeting to which staff responded in a memo. He recommended 
approval . 

Commissioner Bernstein thought that there should first be a complete 
review of the traffic problems. He believed this to be a waste of 
money and effort. He said that in view of the fact that there are 
three airports and complete parking, or as much as we will have in 
the immediate future, it requires a complete study. He suggested 
contacting traffic experts to accomplish this. He said he intends to 
vote no on thi s i tern. 



The following item was unanimously adopted. 

2. San Bruno and South San Francisco School and Home Insulation, 
FY 86-87/88 

No. 87-0001 Resolution authorizing the expenditure 

of funds by the Director to insulate 
160 homes and one school in the cities 
of San Bruno and South San Francisco. 
Expenditure of funds to be limited to: 

1. 207. of the building insulation 
costs ; 

2. Subject to the granting of a 
Noise Easement per building 
insulated to the City & County 
of San Francisco. 

The cost of the Airport's share of the 
insulation i s: 

FY86-87 - $195,000 
FY87-88 - 344,000 

TOTAL: $539,000 

Mr. Turpen said that there are three communities, Mi 1 1 brae , San Bruno 
and South San Francisco, which have areas impacted by noise, 
according to the State statues. He said that three years ago South 
San Francisco embarked on a program of insulating homes within 
noise-impacted areas. The Federal Government pays for 80 percent, 
with a 20 percent local share in which the Airport will participate. 
He said that on a previous occasion the Commission stated it would 
participate only if the appropriate easement was received. He 

Minutes, January 6, 1987, Page 4 



explained that this item is a continuation of the program. 

Commissioner Fleishell asked if this was consistent with the earlier 
grant the Airport made. 

Mr. Turpen that it was. 

Commissioner Bernstein felt is was an excellent program and staff 
should be congratulated for initiating it. 



Identification System 

No. 87-0002 Proposed resolution approving request 

to install a new employee identifica- 
tion card access control system at San 
Francisco International Airport. 

Mr. Turpen explained that this system will offer a more positive 
control over Airport I.D's. He said the new I.D.'s will be tamper- 
proof and coded, allowing an employee access only to those areas of 
the Airport necessary for that employee to be. For example. Pan Am 
operates on Boarding Area 'D' so if a Pan Am employee inserts an I.D. 
card in the scanner at Boarding Area 'A' it will be rejected. He 
said that another positive feature of this new system is that if an 
employee quits or retires that information is punched into the 
computer and the I.D. is automatically cancelled. If the I.D. is 
subsequently inserted into any scanner it will be rejected and 
confiscated by security personnel at the checkpoint. 

Commissioner Tsougarakis asked who was being asked to bid. 

Mr. Clayton Scott, Assistant Deputy Director for Operations, 
responded that it will be an open bidding process. He said that 
staff has a couple of companies in mind that sell the same kind of 
product. 

Commissioner Tsougarakis asked how Mr. Scott knew this was a 
reasonable dollar amount. 

Mr. Scott responded that the amount is competitive within the 
industry. He said there are hundreds of different types of cards on 
the market today, from micro-chips to bar codes to magnetic codes, 
and they are all competitive within that same price range. 

Commissioner Tsougarakis asked how many people will receive an I.D. 

Mr. Scott responded approximately 30,000. 

Commissioner Tsougarakis said that averages out to about $10.00 per 
I.D. 



Resolution to Accept Gift of Tank Trailer from the Shell Oil Company 
- Gift to San Francisco International Airport 

No. 87-0003 The Shell Oil Company has donated a 

5000-gallon tank trailer to San 
Francisco International Airport to 
transport firefighting foam reserves. 

Mr. Turpen said that the item was self-explanatory and he thanked 
She 1 ! 0' 1 for ■ Cko '-" soporous offer. 



Minutes, January 6, 1987, Page 5 



5. $100,000 Supplemental Appropriation for Legal Services 

No. 87-0004 Supplemental appropriation to pay for 

legal professional services related to 
the appeal of the Superior Court's 
decision in the SF0 Airporter case. 

Mr. Turpen said the funds will be available for outside legal 
services should they be required. He explained that because of the 
City's budget process permission must be received to move money from 
one account to another. 



Resolution Approving Signage - Associated Limousines of San Francisco 

No. 87-0005 Resolution approving the design and 

authorizing construction of signage 
for the Associated Limousines of San 
Francisco terminal booths and counters. 

Mr. Turpen said that Associated Limousines is requesting permission 
to place signs in the South Terminal directing passengers to 
Associated's two locations. 



F. CONSENT CALENDAR OF ROUTINE ADMINISTRATIVE MATTERS: 

The following items were unanimously adopted. 

7. Retirement Resolution: 
Theodore Kauser 

No. 87-0006 



Annual Renewal of Four Professional Services Contracts for the South 
Terminal Reconstruction Program. Renewal Extends each Contract for 
12 Months to December 31, 1987, With No Change in Contract Costs 

No. 87-0007 1. Pressure Grout Company - for 

investigation, analysis and 
repair of leaks in tunnels. 

No. 87-0008 2. PSC Associates - for soil and 

foundation engineering. 

No. 87-0009 3. Daniel, Mann, Johnson and 

Mendenhall - for Aircraft 
Apron, Phase II . 

No. 87-0010 4. Gerson/Overstreet - for 

Pedestrian Tunnel C. 



9. Hertz Rent Credit - Construction of Traveler's Aid Booth in the South 
Termi nal 

No. 87-0011 Resolution approving rent credit to 

Minutes, January 6, 1987, Page 6 



Hertz in the amount of $5,035.00 for 
costs incurred to build a customer 
service counter for Traveler's Aid. 



G. PUBLIC HEARING: 

The Public Hearing was opened at 9:15 AM and closed at 9:30 AM, there 
being no further comments from members of the audience. 

10. Airports Commission Budget for Fiscal Year 1987/88 

Hearing concerning the Airports 
Commission's proposed Fiscal Year 
1987/88 budget for $151,902,558. 

Commissioner Bernstein asked Mr. Gene Pastien of Smarte Carte if he 
wished to address the Commission. 

Mr. Pastien asked the Commission to removed the funding for free 
carts in Customs from the budget. He said his company feels they are 
currently providing the proper service with a pay cart system. He 
said that those people unable to pay receive a cart through a voucher 
system. He told the Commission that his company is trying to improve 
their signage and they have already received preliminary approval on 
new signs . 

Mr. Pastien told the Commission that the perception that Smarte Carte 
is overly profitable is not true. He submitted a chart to the 
Commission which explains how their money is spent (see attached). 

Commissioner Stephens asked why Smarte Carte is against free carts. 
He said it was his understanding that Smarte Carte will be paid in 
any event and he felt free carts would cause higher useage. 

Mr. Pastien responded that it costs more money to provide free 
carts. He said that their actual profit would go down because of the 
increased labor needed to provide free carts. He told the Commission 
that the pay cart system is self-policing whereas free carts requires 
additional labor to maintain the supply. He said that the cost for 
providing each cart will go up. Mr. Pastian explained that in a pay 
cart system only passengers needing a cart will spend $1.00; in a 
free cart system passengers will take a cart whether they need one or 
not. He said that a free cart system will result in greater useage 
and more labor to return the carts. He added that in a pay cart 
system the situation can be controlled so that a certain level of 
service and service labor is appropriate for the $1.00 rental. 

Commissioner Stephens asked Mr. Pastien if he was saying that after a 
certain point they were marginally unprofitable on a per-unit basis. 
He asked if Smarte Carte will lose money in the event 150 carts are 
sold in an area that is set up for only 100 carts. 

Mr. Pastien responded that the ratio varies but that is the theory; 
the profit will drop off. 

Commission Fleishell asked how many employees per shift Smarte Carte 
has to retrieve carts in the International Terminal. 

Mr. Pastien responded that he was not certain but believed there were 
seven per shift. 

Minutes, January 6, 1987, Page 7 



Commissioner F 1 e i she 1 1 asked Mr. Pastien to check and let him know. 

Commissioner Stephens asked if the carts must be left in Customs. 

Mr. Turpen responded that when a passenger arrives in San Francisco 
through Customs the cart can be taken anywhere on the Airport, 
including the garage, but those carts must be returned by Smarte 
Carte employees. He explained that a passenger cannot return to 
Customs after exiting so the only way to replenish the cart supply in 
that area is to have a Smarte Carte employee do the job. In the 
domestic areas of the Airport carts can be returned to dispensers for 
the 25? refund so the cart supply is always being replenished. 

Commissioner Stephens asked if there will have to be more carts in 
Customs because there will no longer be a fee. 

Mr. Pastien responded that more carts will have to be supplied in 
that area. 

Commissioner Stephens said that the more carts that are used the more 
money Smarte Carte will receive, regardless of whether a passenger or 
the Airport pays the fee. 

Mr. Pastien explained that 100 percent of the carts that are vended 
in the Customs area must be returned by Smarte Carte personnel, 
whereas in the domestic areas only 50 percent are returned by their 
personnel . 

Commissioner Fleishell asked what the difference is between a 
passenger paying $1.00 or the Airport paying the $1.00; only Smarte 
Carte employees can return carts to Customs in either case. 

Mr. Pastien responded that the public cannot return carts to the 
Customs area but they can in the domestic areas. 

Commissioner Fleishell said that the glitch in this new system is 
that a passenger will be able to get a free cart in Customs and 
return it to a dispenser for 250. 

Mr. Pastien said that last year Smarte Carte put $736,000 into the 
local economy through payments to the Airport and the 250 refund. In 
a free cart system the Airport would not only lose that income but 
there would be an additional cost in providing the free carts. 

Commissioner Bernstein argued that Smarte Carte will still get their 
money and that if a cart is not returned to a dispenser Smarte Carte 
will get $1.00 rather than 750. He said he failed to understand the 
difference between a passenger paying a dollar and the- Airport paying 
a dol lar. . .either way Smarte Carte gets paid. 

Mr. Pastien responded that the difference is that the cost in 
providing free carts to Customs will go up because cart useage would 
be higher with a free cart system. He also felt that offering free 
carts would be sending the wrong signal. 

Commissioner Tsougarakis said that Smarte Carte will be caught in a 
step ladder effect. ..if business goes up enough it will be profitable 
for them, but at this point it will probably go up just enough to 
cost them money. 

Commissioner Bernstein said that the customer should also be 
considered. 

Commissioner Tsougarakis said only one customer has complained and he 
Minutes, January 6, 1987, Page 8 



happens to write a column in a newspaper. 

Mr. Pastien concluded his remarks by telling the Commission that 
Smarte Carte has been at the $1.00 rental since 1975 and they have 
been able to maintain their price for 11 years because of the 
efficiencies of their operation. If they start to lose those 
efficiencies their prices will have to go up or they will make less 
money. He told the Commission that Smarte Carte currently operates 
on only a 6 percent net profit, which is not abusive by industry 
standards . 



There were no other requests to speak. 



Mr. Turpen said that Paul Van Wert of United Airlines was unable to 
attend the meeting and he asked that his December 30, 1986 letter on 
behalf of the San Francisco Airline-Airport Affairs Committee be made 
part of the record (see attached). He said that Mr. Van Wert also 
once again stated the airline's objections to this item. 

Commissioner Bernstein thought that Mr. Van Wert's letter was very 
well done. 



H. CORRESPONDENCE: 

There was no discussion by the Commission. 

* * * 

J. ADJOURNMENT TO GO INTO CLOSED SESSION: 

There being no further calendared business before the Commission the 
meeting adjourned at 9:30 AM to go into closed session. 




LUlM^ 



Jean Caramatti 

nmission Secretary 



Minutes, January 6, 1987, Page 9 



SMARTE CARTE, INC. 

DISTRIBUTION OF INCOME FROM $1.00 CART RENTAL 



Revenue 

Rewards paid out 

Operation labor commission 

Fees and rent to SFO 

Misc. cost 

Taxes and legal cost 

Maintenance and depreciation 

Administrative and accounting 

Net Profit 



$ 1 



00 

25C 

22C 

08C 

01C 

06C 

16C 

14C 

06C 



25% 




Rewards Location Fees Misc. Taxes Maint 
Labor Rent Cost Legal Pep. 



G & A Net 
Account . Income 



SAN FRANCISCO AIRLINE AIRPORT AFFAIRS COMMITTEE 



December 30, 1986 



TO: AIRPORTS COMMISSION 

Hon. Morris Bernstein, President 

Hon. J. Edward Fleishell, Vice President 

Hon. Z. L. Goosby 

Hon. Athena Tsougarakis 

Hon. Don Richards Stephens 

FROM: Chairman, 

San Francisco Airline Airport Affairs Committee 

RE: FY 1987-68 Airport Budget/Free Luggage Carts 



The Scheduled Airlines serving San Francisco International Airport 
hereby request that, prior to apj roving the FY 1967-88 Airport Budget, 
the Commission delete the $875,000 in funding for free luggage carts. 
Although the reasons for our opposition to Commission funding of a 
free luggage cart program have been expressed, over time, on many 
occasions, we want to elaborate on two key points: 

1. The financial consequences of implementing a free cart system 

are not only immeasurable, but uncontrollable. We now have pending 
$1,375,000 in budget and supplemental appropriations for free 
luggage carts. If a free luggage cart operation were to expand 
beyond Customs, as it is very likely to do due to circumstances 
beyond the Commission's control, budget appropriations will grow 
to multi-millions on an annual basis. London's Heathrow Airport 
is currently spending between $4,000,000 and $5,000,000 yearly 
to provide free carts. Conversion to rental cart systems is expected 
to be one of the first items of business for the new private owner/ 
operators of British airports. 

2. Funding a free luggage cart operation is totally inconsistent 
with prudent management of San Francisco International Airport. 
Some years ago the Commission appropriately authorized receipt 

of bids for a luggage cart concession at SFIA. A successful bidder 
was selected and a contract awarded. That concessionaire, currently 
operating satisfactorily and successfully and, in the process, 
paying concession fees to the City, is being requested to provide 
its goods and services, at no charge to the public, with the promise 
of reimbursement by the City for lost revenues. A highly improbable 
and indefensible scenario to say the least. How far can such 
a philosophy lead? How many concessionaires are there at SFIA? 
How many goods and services can the Commission agree to give away 
at City and airline expense? 



December 30, 1986 
Page 2 



If funding for a free luggage program is ever finally authorized by 

the City, and such a program is implemented, it is the Scheduled Airlines' 

full intention to take whatever actions are necessary to ensure that 

all funds required to support such an operation come directly, or 

indirectly, from the City's General Fund. We urge prudent action 

now by your Commission. 




Paul 

Chairman, SFAAAC 



PVW: jg 



Louis A. Turpen - SFIA 
Angela Gittens - SFIA 
SFAAAC 



SAN FRANCISCO 
AIRPORTS COMMISSION 




DOCUMENTS DEPT. 

MAR 181987 

SA.SJ hKAiNiCiSCO 
p uHUC LIBRARY 



MINUTES 



FEBRUARY 3, 1987 



DIANNE FEINSTEIN, MAYOR 

COMMISSIONERS 

MORRIS BERNSTEIN 

President 

J. EDWARD FLEISHELL 

Vice-President 

DR. Z.L GOOSBY 

ATHENA TSOUGARAKIS 

DON RICHARDS STEPHENS 

LOUIS A.TURPEN 

Director of Airports 

San Francisco International Airport 
San Francisco, California 94128 



Index 

of the Minutes 
Airports Commission 

February 3, 1987 



CALENDAR AGENDA RESOLUTION 

SECTION ITEM TITLE NUMBER PAGE 

A. CALL TO ORDER: 3 

B. ROLL CALL: 3 

C. ADOPTION OF MINUTES: 

Regular Meetings of: 

November 18, 1986; 87-0023 3 

December 2, 1986; 87-0024 3 

December 16, 1986 87-0025 3 

D. DIRECTOR'S REPORTS: 

1. Report Transmitting and 
Summarizing the Final Report 
of the Study of the San 
Francisco Garter Snake 
Study Conducted on the 
Airport's West of Bayshore 

Property 3-4 

E. ITEMS INITIATED BY COMMISSIONERS: 

Art Commission Request for Funds 

to Clean Art Work at Airport 4-5 

Resolution Commending Lou Turpen, 

Airport Director on Receiving 

Department of the Year Award 87-0026 5 

F. ITEMS RELATING TO ADMINISTRATION, 
OPERATIONS & MAINTENANCE: 

2. Airports Commission Budget for 

Fiscal Year 1987/88 87-0012 5-6 

3. $22,288,398 Supplemental Appro- 
priation to Fund Approval Capital 
Projects on the Airport's Approved 

Five-Year Capital Projects 87-0013 6 

4. Design Review Approval - Long 

Term Luggage Storage Concession 87-0014 6 

5. Exercise Option of Airport 

Parking Management Contract 87-0015 6-10 



Award of Professional Services 
Contract to Del Campo & Maru, 
Architects, to Provide Archi- 
tectural & Engineering Services 
for Contract 1416-C - Delta 
Airline Facilities - $320,000 87-0016 10 

Award of Contract No. 1752: 

Maintenance Building Roofing 

Republic Airlines Hangar 87-0017 10 

Supplemental to Airports 

Tenant Improvement Guide 87-0018 11 



CONSENT CALENDAR OF ROUTINE 
ADMINISTRATIVE MATTERS: 

9. Extension of Professional 
Services Contract for 
Construction Material Testing 
Services 87-0019 11 

10. Authorization of Rent Credit 
to Mercury International for 

$1,725.92 87-0020 11 

11. Contract Modification - Tracor, 

Inc. - $33,990.19 87-0021 11 

12. Request for Approval of Travel/ 
Training for Airports Commission 
Representative 87-0022 11 



SPECIAL ITEM: 

13. Request by SFO Airporter to 

Address Commission 11-14 



CORRESPONDENCE: 



k. Adjournment to go into closed 

SESSION: 14 



Minutes, February 3, 1986, Page 2 



Minutes 

of the 

Airports Commission Meeting 

February 3, 1987 



CALL TO ORDER: 

The regular meeting of the Airports Commission was called to order at 
9:00 A.M. in Room 282, City Hall, San Francisco, Ca. 



B. ROLL CALL: 

Present: Morris Bernstein, President 

J. Edward Fleishell, Vice President 
Z. L. Goosby 
Athena Tsougarakis 
Don Richards Stephens 



C. ADOPTION OF MINUTES: 

The minutes of the following meetings were adopted by order of the 
Commission President: 

No. 87-0023 Regular meetings of November 18, 1986: 

No. 87-0024 December 2, 1986; and, 

No. 87-0025 December 16, 1986 



DIRECTOR'S REPORTS: 

1. Report Transmitting and Summarizing the Final Report of the Study of 
the San Francisco Garter Snake Study Conducted on the Airport's West 
of Bayshore Property 

Mr. Lou Turpen, Airport Director, told the Commission that this is 
the Department of Fish and Game's final report on the West of 
Bayshore property which specifically addresses the habitat of the San 
Francisco Garter Snake. He emphasized that this is not an Airport 
staff recommendation. 

Mr. Turpen reminded the Commission that the report is the result of a 
study initiated as a mitigation measure to allow the Airport inter- 
change to go forward. He said that in 1981 the Department of Fish 
and Game indicated that without appropriate environmental mitigation 
they would not sign off on the Airport interchange and allow it to 
proceed. As part of that agreement the Commission agreed to allow a 
three-year study on the West of Bayshore property which would 
parallel construction of the interchange. 

Minutes, February 3, 1986, Page 3 



Mr. Turpen said that pages 19-21 of the attached report contains 
quidelines which outline the Department of Fish and Game's recommen- 
dations. He said these are subject to our review and are not 
necessarily set in concrete. They will have to be looked at, as well 
as any forecast uses for the West of Bayshore property, to determine 
what the final mitigation plan will be. 

Commissioner Goosby assumed that staff has not yet filed a final 
recommendation. 

Mr. Turpen responded that that was correct. If staff's plan and 
recommendations for the West of Bayshore property are inconsistent 
with that of the Department of Fish and Game an attempt will be made 
to try to work out a mitigation plan and a use plan which could 
co-exist. If they fail to come together there is an appeal process 
through the Department of the Interior. 

Commissioner Goosby said that it would not hurt to have a consultant 
in mind to assess the conclusions of the Fish and Game Commission and 
adjust it to what the Airport wants to do. He said he was glad to 
hear that staff is thinking about the appeal process as it is 
important to utilize that land as efficiently as possible. 

Mr. Turpen said that the study indicates areas that can be developed. 
Approximately 60 or 70 of the 95 acres on the parcel north of the 
interchange might be usable. At present staff is optimistic about 
talking to the Fish and Game Commission and the appropriate agencies 
to sort this out. 



ITEMS INITIATED BY COMMISSIONERS: 

Commissioner Bersntein introduced a request from the Art Commission for 
$10,000 to clean art work at the Airport. He asked Regina Almaquer of the 
Art Commission to explain the situation. 

Ms. Almaguer said that the Art Commission has embarked on a program of 
maintenance and conservation for all City-owned art work. She said that 
the Art Commission has entered into agreement with various City agencies, 
including the CAO, Recreation and Park, DPW and others to request 
allocations for maintenance of art work as the Art Commission does not 
have the necessary funds in its budget. She said that the Airport has one 
of the largest and most valuable collections of art work in the City. 

Ms. Almaguer said that the Art Commission is requesting an allocation of 
up to $10,000 for the first year to hire a special conservator to assess 
all of the art work and provide condition reports. The second phase would 
be to have the art work treated, if necessary. She said that a lot of the 
work can be done by staff and she has done some of the work herself, but 
she is not a professional conservator and cannot treat the paintings nor 
can she make treatment recommendations. The Art Commission would provide 
copies of all treatment recommendation forms provided by the conservator 
and the Airport will be updated on the status of each of the works. She 
said she has been receiving appraisals on the art works and some of them 
have increased four to five times their original purchase price. 

Ms. Almaguer said that she knew that $10,000 seemed like a large amount 
but she was not certain all of that money would be needed. She said that 
in the event money is remaining in the fund it can be placed in the second 
year funding. 

Commissioner Fleishell said that this should have gone to staff first and 
then brought to the Commission with a recommendation. He did not think 

Minutes, February 3, 1986, Page 4 



the Commission should be voting on this item at this time. 

Mr. Turpen said that by the Commission's own rule a member can introduce 
an item at a meeting but unless it is an emergency it cannot be voted on 
until the following meeting. 

Commissioner Goosby hoped that staff would also provide information on 
whether or not the CAO, the Department of Public Works and other depart- 
ments have actually approved such expenditures and, if so, for how much. 
He felt it was a worthwhile expenditure but wanted to make sure that the 
Airport is in line with what other departments will be paying, taking into 
consideration the size of other collections. 

Mr. Turpen said that this is an important issue as the Art Commission has 
not addressed the permanent collection in terms of maintenance, as it 
should. He said that staff's views will be presented to the Commission at 
the next meeting. 

Commissioner Tsougarakis asked if this can be added to the budget, if 
necessary. 

Mr. Turpen responded that it probably could be added if the Commission 
acts at the next meeting. 

Commissioner Bernstein asked if there was an urgency. 

Ms. Almaguer responded that two weeks would not make any difference. She 
said she has been inspecting the piece and although she thinks the film is 
just on the plexiglass she is not certain. 

Ms. Almaguer said she would provide the Commission with information on 
what other departments have contributed. 



Commissioner Tsougarakis suggested the Commission formally enter into the 
record a commendation for the Director for receiving the Department Head 
of the Year Award yesterday. 

Commissioner Goosby said it should be suitably framed. 

The Commission was in unanimous agreement. 

No. 87-0026 



F. ITEMS RELATING TO ADMINISTRATION, OPERATIONS & MAINTENANCE: 

The following items were unanimously adopted. 

2. Airports Commission Budget for Fiscal Year 1987/88 

No. 87-0012 Resolution approving the Airports 

Commission proposed Fiscal Year 
1987/88 Budget of $151,902,558. 

Mr. Turpen told the Commission that the airlines once again asked him 
to reiterate their single objection to the budget. He also called 
the Commission's attention to a list of budget changes which are 
included both in his memo and the resolution. He explained that 

Minutes, February 3, 1986, Page 5 



these will be the final budget changes however the budget can be 
amended to include funds for the art maintenance program should the 
Commission elect to approve the request. 

Commissioner Tsougarakis asked what the latest was on the "cut it by 
5 percent" request by the Mayor. 

Mr. Turpen responded that he did not know if that was still a major 
issue. He said the Airport has managed to work out the problem and 
get over that hurdle for the time being. 

Commissioner Tsougarakis said that from the Mayor's comments 
yesterday it sounded as if she agreed with Mr. Turpen 1 s letter. 



$22,288,398 Supplemental Appropriation to Fund Approved Capital 
Projects on the Airport's Approved Five-Year Capital Projects 

No. 87-0013 

Mr. Turpen said that on October 7, 1986 the Commission approved a 
Five-Year Capital projects plan for 1986-87 and 1987-88. Those 
projects will require funding, which will come from the Airport's 
unappropriated surplus, amounting to a little over $22-million. This 
is simply an administrative funds transfer to reallocate the funds 
from the unappropriated surplus to the capital plan approved by the 
Commi ssion. 



4. Design Review Approval - Long Term Luggage Storage Concession 

No. 87-0014 Resolution approving the schematic 

design of the new long-term luggage 
storage concesion in the South 
Terminal Complex. 

Mr. Turpen said that staff bid a long-term luggage storage area in 
the South Connector, as approved by the Commission. Due to the 
winning bidder's inability to obtain insurance, the Airport was left 
without an alternative. Staff then approached AMLOCK regarding this 
concession and they indicated they were interested. The Commission 
subsequently approved the concept. The item before the Commission is 
the design review approval for that concession. 



The Commission unanimously approved Commissioner Stephens's request to be 
excused from voting on item #5. The item was unanimously approved. 

5. Exercise Option of Airport Parking Management Contract 

No. 87-0015 Resolution exercising second one year 

option for Airport Parking Management 
Contract. 

Commissioner Stephens asked why this option was being exercised. 

Mr. Turpen responded that when the Commission awarded the contract it 
was awarded with five one-year options. 

Commissioner Stephens asked if it was the Commission's option to 
extend and what happens if the Commission chooses not to exercise the 
option. 

Minutes, February 3, 1986, Page 6 



Mr. Turpen responded that if the Commission does not approve the 
extension it will have to be re-bid. 

Commissioner Stephens asked why staff doesn't find out if another 
contractor could give us a better price. 

Mr. Turpen responded that that would be hard to do as we are 
currently being charged .05 percent of $26-mi 1 1 ion to manage it, and 
that was the lowest of six bids. 

Commissioner Bernstein asked if this was part of the discussion 
regarding the study of traffic, roadways and parking and, if so, why 
would we want to extend this contract. 

Mr. Turpen responded that the extension was only for one year and any 
study undertaken probably would not be concluded until the end of the 
year. He said that the Commission would not be under any obligation 
to pursue this at the end of the year but if the option was not 
granted the Commission would be forced into re-bidding it now. He 
told the Commission that re-bidding it now, without having completed 
the study, would not be effective as it would be re-bid under the 
current terms and conditions. He said that it will take time to 
develop a new approach for ground transportation and suggested that 
the prudent course of action would be to let it go for now and then 
cancel it at the end of the year when the Commission has the study in 
hand and evidence that it should be changed and a direction to 
pursue. He thought it would take at least seven months to come up 
with a new ground transportation plan and hold public hearings. 

Commissioner Bernstein said that this would be as good a time as any 
to start putting it into effect instead of wasting time with new 
contracts and new bids. He said everyone agreed that it is a 
disgrace. 

Commissioner Stephens said he did not agree. 

Mr. Turpen said he would not characterize traffic at the Airport as a 
disgrace. If that were the case there are an awful lot of airports 
coming to SFO to copy disgraceful traffic. He said that the industry 
has changed dramatically with the introduction of vans and this 
obligates us to take a look at how we run that business. 

Commissioner Goosby said he would like Mr. Garibaldi to advise the 
Commission of the legal implications of a five-year bid with one-year 
extensions and the Commission's position in not extending the option. 

Mr. Garibaldi, Airport General Counsel, responded that the Commission 
should have some reason in not approving the option. The Commission 
should act in good faith in dealing with the person to whom the 
contract was awarded. This was not a five year with one year 
options, it is five, one-year options with the current year expiring 
July 1, 1987. Staff wanted to bring this before the Commission now 
as Board approval is necessary and that takes time. 

Commissioner Stephens said that the purpose in bidding it with five, 
one-year options was to give the Commission the opportunity to look 
at the cost and values on a one-year basis. The Commission should 
not be restricted from looking for better prices. 

Mr. Turpen said that the Airport has an obligation to determine, on 
an annual basis, whether or not these services can be performed more 
cheaply by contractor than by in-house personnel. Staff provides 
that information to the Controller who then makes the certification 
that these services can be provided more economically by contract as 
opposed to in-house. 

Minutes, February 3, 1986, Page 7 



Commissioner Stephens said that he did not think there was any 
question that it could be provided more cheaply by contract than 
in-house but there are a variety of contractors involved in the 
parking business. 

Mr. Turpen told Commissioner Stephens that he was correct and a year 
ago this bid was clearly the lowest of six bids. 

Commissioner Bernstein asked when staff could start. 

Mr. Turpen responded that staff could immediately start looking at 
ground transportation. One of the first things staff will have to do 
is determine the policies the Commission might want to pursue and 
what parameters, if any, they want to establish. 

Commissioner Tsougarakis asked if there was a provision to study 
ground transportation in the long range planning. She wanted to know 
if two different studies were needed and how long it would take to 
implement if a study was done now. 

Mr. Turpen responded that there are two issues the Commission must 
recognize: First, the Airport has a master planning consultant, 
approved by the Commission, who must deal with the physical size of 
facilities, i.e. the size of parking lots and the parking needs based 
on demand over time. The other is the operational aspect of ground 
transportation, i.e. where the buses go and where they park. He 
explained that the physical plan is being addressed by the consultant 
and the operational plan can initially be addressed by staff in 
setting the parameters. He said those parameters must be established 
up front, whether a consultant is hired or it is handled in-house. 

Commissioner Bernstein argued that it can't be handled in-house 
becuase staff brought the Airport to this point. 

Mr. Turpen argued that that was not true; there were a lot of factors 
that brought us to this point. There have been a lot of changes in 
the industry to which staff has tried to react but there have been 
constraints. 

Commissioner Bernstein said he did not want staff to handle this. 

Commissioner Tsougarakis said that before any money is spent she 
would like a definition of the problem. She realizes there has been 
a change in the ground transportation business but she did not 
understand the problem with which the Commission was asking staff to 
deal. She felt that the Commission should be more articulate. 

Commissioner Bernstein asked Commissioner Tsougarakis if she was 
satisfied with the status quo. 

Commissioner Tsougarakis asked Commissioner Bernstein to articulate 
the problem other than to declare the situation a mess. She asked 
why the parking garage is a problem and why we are dealing with it on 
this particular item. 

Commissioner Bernstein responded that it costs the Airport $700,000 
to collect $800,000 from taxis. 

Commissioner Tsougarakis did not see the connection with the parking 
garage. 

Commissioner Bernstein responded that he was talking about all 
vehicles. He asked Commissioner Tsougarakis if she was satisfied 
with the traffic and the lawsuits at the Airport. 



Minutes, February 3, 1986, Page 8 



Commissioner Tsougarakis did not understand what the study would 
accomplish. If it defined the problem she would be satisfied. 

Commissioner Bernstein again said he did not want the information to 
come from staff. 

Commissioner Fleishell said that a study would not provide results 
for six or seven months and it would take another four or five months 
to get anything implemented, bringing us to the end of the year. He 
recommended bringing this item back in six months in the event the 
Commission decides to go out to bid. 

Commissioner Fleishell said he was also concerned about Mr. 
Garibaldi's comment that the Commission must have a reason in not 
exercising its option. 

Mr. Garibaldi responded that the Commission must act with good faith 
and fair dealing toward its contractors. 

Commissioner Fleishell asked if the Commission could arbitrarily 
decide that it wanted to make a change. 

Mr. Garibaldi thought not. 

Commissoner Fleishell argued that when a contract is extended at the 
discretion of the Commission no reason should be needed. 

Commissioner Benstein quoted a passage from Mayor Feinstein's letter 
which read: "It is clear that the Airport has a parking and traffic 
congestion problem that is likely to increase." 

Commissioner Tsougarakis said she was not suggesting that there 
wasn't a problem she simply wanted a definition of the problem. 

Mr. Turpen said that Mr. Foerster just handed him the January 30 
letter from the Mayor. He asked the Commission if it wished to 
recalendar the RIDES item for the next meeting. 

The Commission agreed. 

Mr. Turpen said that Commissioner Fleishell 's point was well taken 
but added that staff can return within the next few weeks with some 
basic guidelines or criteria for the Commission's reactions. He said 
that currently San Mateo cabs are not allowed to come to the Airport 
and if that philosophy is changed it could solve the short-haul 
problem. He explained that there are a lot of refusals to convey to 
San Mateo due to the short distance. He said that the Airport could 
provide a disincentive by reserving the entire inside lane on the 
lower level for ground transportation, as it is at O'Hare, forcing 
vehicles picking up at the Airport to the outside lane. He said 
there are a number of things staff has thought about but they are 
policy decisions not operational decisions. He said that anything 
could be done operationally but it is the philosophical intent of the 
Commission that remains the question. Within the next 30 days he 
would like to present broadbrush policies to the Commission. 

Commissioner Stephens said he would like to see the options along 
with the pros and cons, what the present operators are going to say, 
their reasoning and what the pluses are. He said someone must have 
lobbied long and hard to keep the San Mateo cabs off the Airport so 
they must have a vested interest in something. 

Commissioner Goosby said that the Commission discussed this two or 
three months ago and that would have been the time to bring it up. 



Minutes, February 3, 1986, Page 9 



He thought a reasonable solution was arrived at based upon staff's 
recommendation. He said there will be traffic problems and 
congestion at the Airport 50 years from now simply because SFO is a 
busy Airport. The operators will always complain that the Airport is 
not being properly operated because they do not have access to the 
inside lane or designated curbspace for their vans. He said that if 
the Commission can agree on a transportation consultant to look at 
the operation and make suggestions, some of the Commission's concerns 
might be addressed. He urged the members not to assume a wrong 
decision was made every time an operator complains of problems. 

Commissioner Bernstein argued that this was not just a matter of 
money but of service. He added that he did not want staff to handle 

this. 

Mr. Turpen did not feel Commissioner Bernstein's statement was fair. 
He did not think that staff brought the Airport to this point. He 
said that the Airport has arrived at this point through a collective 
effort, by whatever circumstanes or impetus. Everything that has 
happened has been carefully reviewed by the Commission at public 
hearings and voted on. The question now is how does the Airport 
withdraw from this point, if, in fact, there is a problem. He said 
that the Commission can hire a consultant who will talk to him and 
staff and then present the same plan staff would have presented and 
the Commission will say it is wonderful. He felt that staff should 
present those assumptions along with a list of policy concepts the 
Commission must address and staff can be directed at that point. He 
said that the Commission will have to address those assumptions 
whether they are presented by staff or a consultant. 

Commissioner Bernstein instructed Mr. Turpen to get it done. 

Mr. Turpen said that this must go through a lengthy approval process 
of the Controller, Finance Committee and the Board, which takes about 
four months. 



The following items were unanimously adopted. 

6. Award of Professional Services Contract to Del Campo & Maru, 

Architects, to Provide Architectural and Engineering Services for 
Contract 1416-C - Delta Airline Facilities - $320,000 

No. 87-0016 This contract provides for the 

interior development of Delta 
Airlines' gaterooms, ticketing areas, 
baggage systems, loading bridges, and 
VIP spaces in Boarding Area 'C and 
South Terminal . 

Mr. Turpen said that Human Rights Commission approval has been 
received. 



7. Award of Contract No. 1752: 
Maintenance Building Roofing 
Republic Airlines Hangar 

No. 87-0017 Resolution awarding Contract No. 1752 

to Royal Roofing Co., Inc. in the 
amount of $89,980.00 



Minutes, February 3, 1986, Page 10 



8. Supplement to Airports Tenant Improvement Guide 

No. 87-0018 Resolution approving Supplement No. 3 

to the Airport's Tenant Improvement 
Guide. 

Mr. Turpen explained that this brings the Airport's Tenant 
Improvement Guide into compliance with the Public Works code. 



CONSENT CALENDAR OF ROUTINE ADMINISTRATIVE MATTERS: 

The following items were unanimously adopted. 

9. Extension of Professional Service Contract for Construction Material 
Testing Services 

No. 87-0019 Resolution extending the professional 

service contract with Signet Testing 
Laboratories, Inc. to December 31, 
1987, with no change in contract costs 



10. Authorization of Rent Credit to Mercury International for $1,725.92 

No. 87-0020 Resolution authorizing a rental credit 

to Mercury International Sales and 
Service for $1 ,725.92. 



11. Contract Modification - Tracor, Inc. - $44,990.19 

No. 87-0021 Modify Tracor, Inc. Contract #82035 

(Phase IV of the Noise Monitoring 
System Expansion) approved by Airports 
Commission Resolution 85-0338, 
November 19, 1985 to further enhance 
aircraft identification and provide 
for sales tax. 



12. Request for Approval of Travel /Training for Airports Commission 
Representative 

No. 87-0022 



SPECIAL ITEM: 

13. Request by SFO Airporter to Address Commission 

Commissioner Bernstein asked Mr. Steve Leonoudakis of SFO Airporter 
to address the Commission. 

Mr. Leonoudakis asked the Commission for equity in the rates being 
charged. 

Minutes, February 3, 1986, Page 11 



Commissioner Bernstein interrupted Mr. Leonoudakis and told him that 
he would not allow comments on the fees and rates as the Airport is 
currently involved in legal action with SFO Airporter. He said he 
would not allow Mr. Leonoudakis to use the Commission as a forum to 
present facts and figures to which the Commission cannot respond and 
which could be used against the Airport. He said they must be 
presented in a court of law. 

Mr. Leonoudakis responded that he did not intend to discuss anything 
regarding litigation. He said that SFO Airporter was currently 
operating under a 30 day permit and he wanted to discuss the parity 
of the fee being charged under that permit. 

Commissioner Bernstein again interrupted Mr. Leonoudakis and told him 
that the Commission would not listen to any numbers. He said that 
the last time he met with Mr. Leonoudakis he had indicated he would 
return to discuss a settlement, but he did not. He said that Mr. 
Leonoudakis was supposed to help him. 

Mr. Leonoudakis said he was before the Commission to do just that, 
with reference to the permit. He said that the Commission does not 
have the power to deny him to speak. 

Commissioner Bernstein said he was not denying him the right to speak. 

Mr. Garibaldi said it was his understanding, from Mr. Leonoudakis' s 
representation, that he wanted to discuss a request for a reduction 
of his fee under the permit. He felt that was an appropriate topic 
to discuss with the Commission as long as matters involving pending 
litigation and Airporter's pending claim are not discussed. 

Commissioner Bernstein asked Mr. Garibaldi to interrupt the 
discussion should inappropriate comments be made. 

Mr. Leonoudakis explained that in better times his company carried as 
many 1,200,000 passengers a year from the Airport to San Francisco. 
By comparison, in 1986 only 590,000 passengers were carried; a drop 
of 610,000 passengers. He said that in January 1987 his buses 
carried only 37,000 passengers compared with Janaury 1986 when they 
carried 47,000; a drop of 21 percent. Mr. Leonoudakis said that in 
the old days they carried 100,000 passengers a month and now they are 
carrying only 40,000 a month. He said that those passengers are 
moving toward the van and minibus. 

Mr. Leonoudakis told the Commission that Airporter must provide 
service every 15-minutes during the peak period. Vans and minibuses 
operate equipment that costs about $10,000 per vehicle; under 
Airporter's permit they are required to provide deluxe 46-passenger 
buses costing $180,000 apiece. Airporter pays the prevailing wage 
and a standard of benefits to their employees. . .$17.50 an hour 
compared to the $3.40 an hour minimum wage paid to a van driver. His 
employees work 8-hour days and are provided a pension plan, medical 
and dental plans, a perscription plan, vacation and sick leave. 

Mr. Leonoudakis said that van operators pay the Airport 35 cents for 
each loop on the Airport, or, 16 cents a passenger. He said that 
their permit requires them to provide first class service with at 
least 12 modern, deluxe buses, (they provide 30 buses); uniform 
personnel are on duty 24-hours a day, 365 days a year, and close 
headways must be maintained. He said that the average passenger load 
is down 10 passengers per vehicle and it is not uncommon for a bus to 
leave the Airport with only one or two passengers, and sometimes 
without any passengers at all but it is Airporter's responsibility to 
maintain those headways. Mr. Leonoudakis said that his company must 

Minutes, February 3, 1986, Page 12 



also provide a downtown terminal, staffed 24-hours a day. He said 
that his employees do not work 10 hour days, at $3.40 an hour, amd no 
overtime. He said he is proud of the fact that his company is 
probably the last union-affiliated bus operation in the City. 

Mr. Leonoudakis told the Commission that their annual cost of 
operation is $6-mi 1 1 i on . If they are to have a fair opportunity for 
return on their investment and operating costs they need some parity 
with the fee being charged the van and mini bus operators. He said 
Airporter is currently being charged 3-1/2 cents for every deplaning 
passenger. He said that he told the Commission in the very beginning 
that the criteria was wrong and unfair and that it has been elimin- 
ated from the new call for bids for that very reason. He felt that a 
more equitable way of handling it would be to charge Airporter a fee 
that is in someway comparable to what other ground transportation 
operators are charged. He said his company is willing to pay more 
than the other operators because his company is downstairs, but 
Airporter is currently paying almost $1.00 for each passenger, almost 
six times more than other operators. He suggested that their permit 
be amended so they would pay twice what the other operators pay for 
each passenger they pick up. 

Mr. Leonoudakis said that the first criteria for the Airport is 
public service and that is what Airporter offers. He believes his 
company has done an outstanding job and wants to continue to do so 
but they should have an opportunity to make a small profit. He wants 
to be treated as the other ground transportation operators are 
treated and requested that the Commission adopt an appropriate 
resolution reducing the fee charged Airporter as of the date of their 
contract, June 22, 1986, to 32 cents per passenger as opposed to 
3-1/2 cents for every deplaning passenger. He asked why they should 
be charged for passengers who take taxicabs, limousines, family cars, 
vans or mini buses . 

Commissioner Bernstein asked Mr. Garibaldi if Mr. Leonoudakis' s 
statements citing "unfairness" went beyond what he was supposed to be 
discussing. 

Mr. Garibaldi responded that Mr. Leonoudakis was entitled to make a 
presentation to the Commission to try and convince the members to 
reduce his fee. 

Commissioner Bernstein said he did not want Mr. Leonoudakis' s 
comments to become a matter of record and accepted as fact. 

Mr. Garibaldi said that staff has not yet responded. He was sure 
there would be no agreement to the claim that the contract is 
unfair. He said that Mr. Leonoudakis agreed, knowing all the 
conditions that were existent at the time. 

Mr. Leonoudakis commented that when their contract was cancelled they 
had no option; they were presented with the contract and told to sign 
it or leave. 

Commissioner Bernstein argued that they were not forced to sign. 

Mr. Leonoudakis responded that his company has a large investment in 
equipment and a commitment to personnel. He said that when he 
received an ultimatum to either accept it or leave, with no opportu- 
nity for discussion, he felt he had no alternative but to sign. He 
said he wants to stay in business. 

Commissioner Goosby said that the Commission will take this under 
advisement and the staff will respond and give him the courtesy of a 
reply. 

Minutes, February 3, 1986, Page 13 



* * * 



I. CORRESPONDENCE: 

There was no discussion by the Commission. 



* * * 



K. ADJOURNMENT TO GO INTO CLOSED SESSION: 

There being no further calendared business before the Commission the 
meeting adjourned at 10:10 AM to go into closed session. 




7 



4- 



ean Caramatti 
ommission Secretary 



Minutes, February 3, 1986, Page 14 



F 

MS 

2 



SAN FRANCISCO 
AIRPORTS COMMISSION 




MINUTES 



DOCUMENTS DEp Tt 

APR 141937 



MARCH 3, 1987 



DIANNE FEINSTEIN, MAYOR 

COMMISSIONERS 

MORRIS BERNSTEIN 

President 

J. EOWARD FLEISHELL 

Vice-President 

OR. Z.L GOOSBY 

ATHENA TSOUGARAKIS 

DON RICHARDS STEPHENS 

LOUIS A.TURPEN 

Director of Airports 

San Francisco International Airport 
San Francisco, California 94128 



Index 

of the Minutes 

Airports Commission 

March 3, 1987 



CALENDAR 


AGENDA 




SECTION 


ITEM 


TITLE 


A. 




CALL TO ORDER 


B. 




ROLL CALL: 



RESOLUTION 

NUMBER PAGE 



ADOPTION OF MINUTES: 

Regular meetings of: 

January 6, 1987, and, 87-0028 

February 3, 1987 87-0229 



DIRECTOR'S REPORTS: 

1 . Status Report on Smarte 
Cartes in Customs 



ITEMS INITIATED BY COMMISSIONERS: 



PENDING LEGISLATION: 

Review and Consideration of 

AB 273, AB 276 and SB 189 5-6 



G. ITEMS RELATING TO ADMINISTRATION, 

OPERATIONS & MAINTENANCE: 

3. Rejection of All Bids - Boarding 
Area 'E' Principal Concession 





Lease 


87-0030 


6-11 


4. 


Award of Boarding Area ' E 1 
Principal Concession Lease 




11 


5. 


SFO Airporter Request for 
Change in Permit Fee 


87-0031 


11 


6. 


Funding Authorization - Art 
Commission 


87-0032 


11-12 


7. 


Authorizing Agreement for 







Parking /Transportation 

Management Services 87-0033 12 

Rejection of All Bids - Contract 
No. 1564: Rehabilitate Drainage 
Pump Station No. 1 87-0034 13 



9. Bid Call: Contract No. 1802: 
Extend Blast Fence, Taxiway 
'A' at Road R-16 87-0035 13 

10. Award of Contract No. 1438B: 
Reconstruct Taxiways 'A' and 
'B' - Phase II 87-0036 13 



11. Renewal Options for Rental Car 
Concession Agreements 87-0037 

87-0038 
87-0039 
87-0040 
87-0041 14 

12. Electronic Security Door System 

Project - $2-Mi 1 1 i on 14 

13. Establishment of Narcotics 
Forfeiture Fund for Airport 

Police 87-0042 14-15 

14. Annual Renewal of Professional 
Services Contract with O'Brien- 

Kreitzberg & Assoc, Inc. 87-0043 15 



CONSENT CALENDAR OF ROUTINE 
ADMINISTRATIVE MATTERS: 



15. 


Retirement Resolution: 








Conrad I. Ryndik 


87-0044 


15 


16. 


Retirement Resolution: 








Yong Ho "Bob" Lee 


87-0045 


15 


17. 


Retirement of the Honorable 







Joseph P. Bort from the 

Metropolitan Transportation 

Commission 87-0046 15 

18. Declaration of Emergency - 
Water Main & Pavement Repair 

- Contract No. 1776. 87-0047 16 

19. Declaration of Emergency - 
Electrical Duct Repair - 
Runway 1R-19L at Taxlway 'F' 

Contract No. 1772 87-0048 16 

20. Approval of Claims Settlement 87-0049 16 

21. Design Review Approval for 
Automatic Teller Machines 

Enclosure in the South Terminal 87-0050 16 

22. PSA Ground Support Equipment 
Facility - Plot 1 - T-3220 - 

$250,000 - No Cost to City 87-0051 16 



Minutes, March 3, 1987, Page 2 



23. Continental Airlines Cargo 
Facility Plot 10 - Conversion 
of Existing Hangar for Air 
Cargo Handling - T-3138 - 

$200,000 - No Cost to City 87-0052 16 

24. Type II Modification for 
Contract 1432A - Relevel 
Runway 28R, Extend Taxiway 'K' 
and Fillets of Taxiways 'D' 

and 'R' 87-0054 17 

25. Travel /Training for Airports 

Commission Representative 87-0053 17 



CORRESPONDENCE: 17 

CLOSED SESSION: 4 



ADJOURNMENT TO GO INTO 

CLOSED SESSION: 17 



Minutes, March 3, 1987, Page 3 



Minutes 

of the 

Airports Commission Meeting 

March 3, 1987 



A. CALL TO ORDER: 

The regular meeting of the Airports Commission was called to order at 
9:00 A.M. in Room 282, City Hall, San Francisco, Ca. 



B. ROLL CALL: 

Present: Morris Bernstein, President 

J. Edward Fleishell, Vice President 
Athena TsougaraMs 

Absent: Z. L. Goosby 

Don Richards Stephens 



C. ADOPTION OF MINUTES: 

The minutes of the following regular meetings were adopted by order of the 
Commission President. 

No. 87-0028 January 6, 1987 

No. 87-0029 February 3, 1987 



D. DIRECTOR'S REPORTS 

1. Status Report on Smarte Cartes in Customs 

Mr. Lou Turpen, Airport Director, told the Commission that the free 
cart system in Customs was Initiated yesterday. He said that 
although It Is too early to provide statistics he wanted to advise 
the Commission that the free cart system has gone into operation. 



J. CLOSED SESSION: 

The meeting recessed at 9:03 AM to go into closed session and reconvened 
at 9:25 AM. 



Minutes, March 3, 1987, Page 4 



E. ITEMS INITIATED BY COMMISSIONERS: 

There were no items initiated by Commissioners 



F. PENDING LEGISLATION: 

2. Review and Consideration of AB 273, AB 276 and SB 189 

Mr. Turpen said that according to existing procedures staff has 
attempted to highlight those pieces of legislation affecting the 
Airport and asked the Commission's guidance 1n communicating with the 
Sacramento lobbyist. He said that his February 20 memo 1s self- 
explanatory and recommended taking a position on SB 189 concerning 
firearms. 

Commissioner Tsougarakis agreed with Mr. Turpen's recommendation. 
She asked what the current law was relating to AB 273. 

Mr. Turpen responded that there is none. 

Mr. Don Garibaldi, Airports General Counsel, responded that there 1s 
no mori tori urn on this type of litigation. 

Commissioner Fleishell said that guns are manufactured in two 
European countries and legally imported into the United States so 
passing a law prohibiting their manufacture Is meaningless. 

Mr. Turpen responded that he understood but if the Commission did not 
object, Sacramento will be advised. 

Commissioner Fleishell said that the Commission should have a copy of 
a letter from Mr. Gatzke, the attorney from Orange County, on the 
fourth version of the noise bill which purports to take Into account 
the attitudes of government. He said that Mr. Gatzke thinks it 
should be opposed in its present form and Commissioner Fleishell said 
he was inclined to agree with him. He suggested notifying Sacramento 
to do whatever is right. 

Commissioner Fleishell asked if the Airport ever received the bills 
from Mr. Gerber. 

Mr. Turpen responded that they were eventually received but he does 
not remember what the lag time was. 

Commissioner Fleishell said that Mr. Turpen sent the Commission 

copies of a letter on legislation addressed to Congress with a bill 

that had neither been before the Commission nor the City's 
Legislative Policy Committee. 

Mr. Turpen responded that this was an extension of the effort staff 
has undertaken to try to get some protection under the new AIP 
legislation. 

Commissioner Fleishell said that it may be an extension of an effort 
but it is also a statement of a policy position of the City. He said 
that staff should follow procedures and discuss these issues with the 
Commission. The Commission will then send them to the Legislative 
Policy Committee and that body will send them to Washington. 

Mr. Turpen said that a list has been maintained of those people staff 
Minutes, March 3, 1987, Page 5 



has communicated with over the last 18 months regarding the Q707 
matter. He said that it has been suggested to them that a 
legislative solution might be necessary in order to protect local 
airports. The new AIP legislation is now being considered by 
Congress and is a natural extension of a series of letters sent to 
those people. He said that this is simply just another effort to 
advise them of the current thinking. 

Commissioner Fleishell said that it is a policy statement of which 
the City is unaware. He said that Mr. Garibaldi should advise Mr. 
Turpen that the rules require that bills come before the Commission 
and then sent to the City's Legislative Policy Committee to determine 
if that is the position that should be taken. Commissioner Fleishell 
added that he happened to agreed with it. 

Mr. Turpen apologized but told the Commission that he thought he was 
executing the Commission's wishes. 

Commissioner Fleishell said he probably was. 

Mr. Turpen said that he will follow that procedure in the future. 



ITEMS RELATING TO ADMINISTRATION, OPERATIONS AND MAINTENANCE: 

The following items were unanimously adopted. 

Items #3 and 4 were called together. 

3. Rejection of All Bids - Boarding Area 'E' Principal Concession Lease 

No. 87-0030 Rejection of all bids - Boarding Area 

'E' Principal Concession Lease. 
Approval of revised specifications, 
authorization for new bid - Boarding 
Area 'E' Retail Concession Lease. 

Commissioner Bernstein asked Mr. Robert Brisbee to address the 
Commission. 

Mr. Robert Brisbee, Secretary/Treasurer of Local 775, United Food and 
Commercial Workers, said his Local represents 3000 workers in San 
Mateo County, 25 of whom are employed by ABC Cigar. He said that ABC 
Cigar has been a very fair employer and they have lived up to every 
word of their agreement. They employ a very stable workforce 
consisting primarily of women, the majority of whom are minority and 
over the age of 50. He said that many of their employees have been 
with them since the inception of the labor agreement, over 15 years 
ago. He said that it would be a shame to see those employees out In 
the street because of a bid situation at the Airport and urged the 
Commission to accept ABC Cigar's bid. 

Commissioner Bernstein asked Ms. McDowell if she wished to address 
the Commission. 

Ms. Deanna McDowell, the attorney representing ABC Cigar and the 
daughter of Dorothy Lahey, the principal owner of the company, said 
they were informed on Friday that HRC rejected Host and Duty Free's 
joint ventures. She urged the Commission to award the lease to ABC 
Cigar in accordance with applicable law. She said that a decision to 
award the lease to her company will financially benefit the City and 

Minutes, March 3, 1987, Page 6 



would be in accordance with the pre-bid resolution to award this 
lease to a WBE and/or minority as ABC Cigar is almost entirely owned 
and operated by women and minorities. She said that the concession 
could be open in August 1987. 

Ms. McDowell concluded by urging that if the Commission decides to 
reject all bids that their reasons be stated, and, that the WBE/MBE 
preferences be retained in a new bid. 

Commissioner Bernstein called on Paulette Lee. 

Ms. Paulette Lee, counsel for Host International, said that Host 
International is the general partner of Host North Terminal 
Merchandise, Ltd. She said that as 65 percent owner and general 
partner, Host designated Croissant Tree as its minority venture, the 
limited partner in the partnership and 35 percent owner. She said 
that Host North Terminal submitted the highest bid but they were 
advised last Friday that HRC denied them certification as a qualified 
joint venture. She said that although they have not had the opportu- 
nity to review HRC's opinion in great detail the reason for their 
denial apparently focuses on the fact that Host North Terminal is a 
limited partnership as opposed to a general partnership. 

Ms. Lee said that their concern and dismay over the situation rests 
on the fact that the bid documents did not clearly provide that in 
order to be eligible for award of the contract as a joint venture 
certification had to be received by HRC. She said there was nothing 
in the bid documents that required the joint venture to seek, certifi- 
cation by HRC in order to be eligible for the award, but rather that 
the certification was desired only if the bidder wished to avail 
itself of the 5 percent bid preference. Ms. Lee said there was 
nothing in the documents which provided that if the joint venture was 
refused certification by HRC that it would be completely ineligible 
for contract award. The only consequence apparent from the bid 
documents was that the 5 percent preference would be denied. She 
said that their understand- ing throughout this process was that HRC 
would rule on the preference not on their eligibility. She said that 
if the bid documents required that a joint venture bidder be 
certified by HRC in order to receive both the bid preference and 
eligibility for award of the contract and that the same HRC 
regulations applied to both the certi- fication and the eligibility 
process Host would have considered structuring its bid differently. 
She told the Commission that Host would have sought pre-certification 
advice from the HRC and they probably would have structured their bid 
differently if that advice proved to be inconclusive. 

Ms. Lee said that as presently structured the HRC regulations 
pertaining to joint ventures appear to preclude limited partnerships 
but felt that this was contrary to business realities. She said that 
where there is a 65 percent majority owner and a 35 percent minority 
owner the majority owner necessarily needs to protect itself from 
acts of the minority owner in excess of their authority. However, in 
order to satisfy the HRC, the minority owner needs to have equal 
rights to bind the entire joint venture. She said this means that 
the minority partner could commit the joint venture to spending 
millions of dollars, most of which would be borne by the majority 
owner. She said that few, if any, majority owners, as prudent 
business people, would allow such a situation to occur, yet that is 
exactly what HRC is asking. 

Ms. Lee said that Host's joint venture agreement insulated the MBE 
from unlimited liability in that if anything adverse were to happen 
to the joint venture business the MBE could simply walk away from his 
investment in that joint venture. She said that apparently HRC seems 



Minutes, March 3, 1987, Page 7 



to prefer that the minority owner share in an unlimited liability for 
the joint venture business which is adverse to the interests of the 
mi nori ty owner. 

For these reasons Ms. Lee urged that Host North Terminal be awarded 
the contract, having fulfilled all of the MBE participation require- 
ments as set forth in the Airport documents and having met all HRC 
standards to the extent reasonably possible under actual business 
conditions. She said that if such a resolution is not passed Host 
International urges that the decision be tabled pending their study 
of HRC's decision and all appeal rights that they may want to take. 

Commissioner Bernstein asked Mr. Ira Shecter to address the 
Commi ssion. 

Mr. Shecter, Vice President of Merchandising Operations for Host 
International, said that Host and its partners submitted the highest 
bid and should be awarded the contract. He said that Host feels the 
staff was well intentioned and that the bid was structured to clearly 
encourage joint ventures to the extent that a 5 percent bid 
preference for joint venture was offered. He said that in terms of 
the text of the documents not only Host International and its partner 
but the second highest bidder, Duty Free Shoppers and its partner, 
also structured its bid as a joint venture. He said that because of 
their zeal to respond to the bid documents as a joint venture their 
bid is being rejected. Mr. Schecter said that his company went as 
far as it could legally go and he believes, from reading Duty Free 
Shoppers submission, that they went as far as they could legally go 
in responding to what the bid document requirements. He felt that 
because Host is the highest bidder they should be awared the contract. 

Mr. Shecter also told the Commission that by rejecting all bids and 
not awarding to Host he believes that the Commission is depriving 
their minority partner from an opportunity to participate in this 
concession. He said that everyone involved in this process bid from 
the same set of ground rules and that it has become apparent that the 
ground rules are changing on them as their bids are being evaluated. 

Mr. Shecter concluded by saying that all of the bids were fairly 
close but Host came out first by going as far as they could go in 
putting forth the largest number they could. He said that Duty Free 
Shoppers and ABC Cigar did the same. Each bidder tried to come up 
with an economically sound and viable package. He argued that none 
of the economic circumstances upon which this bid was based have 
changed. All of the information relative to the airline mergers of 
American and Air Cal and of Delta moving off that particular 
concourse were known at the time their bids were submitted. He 
therefore felt that if the concession is rebid the highest bidder, 
being Host, would have to be the lowest bidder the next time around. 
He felt that in that event any bid higher than Host's would be 
economically unsound, creating the potential for higher prices and a 
cutback of service. He felt that Host fairly won the contest, using 
the same set of ground rules as everyone else, and the bid should be 
awarded to Host International and its partner. 

Commissioner Bernstein asked Mr. David Suzuki to address the 
Commi ssion. 

Mr. David Suzuki, representing the Duty Free Shoppers/Kass Management 
joint venture, felt that the Commission must keep in mind that the 
qualified joint venture bid preference was offered for the purpose of 
encouraging bidders to bid in this form and doing business as a joint 
venture involves higher costs and inefficiencies for which the bidder 
is compensated by the bid preference. He felt that the bid 



Minutes, March 3, 1987, Page 8 



preference should be available only to qualified joint ventures or 
those joint ventures that would provide the requisite degree of 
participation for its minority partner. Duty Free consulted with HRC 
on a number of occasions when they were formulating and negotiating 
their joint venture with Kass Management, although they did not have 
enough time to go through a pre-certification process. He said that 
the HRC Director's determination to deny the Duty Free Shopper' s/Kass 
Management joint venture is puzzling because the determination quotes 
a section of their agreement which specifically provides that the 
concession must be managed by concensus and good faith efforts to 
agree. Inspite of such language the Director concludes that their 
minority partner does not have the right to participate in the 
management and policy-making decisions of the concession. He said 
that this is contrary to the HRC staff report, attached to the 
determination, which concludes that the degree of participation 
provided in their joint venture was sufficient for the bid prefer- 
ence. 

Mr. Suzuki said that in contrast to statements made by Host 
representatives it is not enough simply to look at the absolute 
numbers. He said that each bidder formulated its joint venture in 
response to what it thought was required for a qualifying joint 
venture. He said it was also obvious from reading the HRC staff 
report that some bidders provided for far more participation and 
control by minority partners than others. He said that it goes 
without saying that the greater the degree of participation and 
control, the greater the involvement in the joint venture is afforded 
to the minority partner, and the greater the inefficiencies and cost 
involved. Each bidder had to consider these costs when they were 
formulating their bids. He said that there is no way to tell what 
would have been bid in the absence of the availability of the joint 
venture bid preference. One joint venture, involving greater cost 
and inefficiencies, had to put forth a lower bid number; another 
joint venture, involving virtually no inefficiencies, would have a 
higher bid number. The point being that there is no way to tell what 
the numbers would have been in the absence of the bid preference. 

Mr. Suzuki encouraged the Commission to examine the Director's 
decision and recognize that it is erroneous on its face and that the 
Duty Free Shoppers/Kass Management joint venture is entitled to the 
bid preference. Failing that, he asked that the Commission recognize 
that there is no way to fairly evaluate the bids and that all bids be 
rejected. 

Mr. Suzuki said that award of the concession to the current highest 
bidder would establish a number of negative precedents. It would 
stand for the proposition that bids may be orally amended and supple- 
mented after the bid opening, involving the Commission in countless 
future disputes as future bidders attempt to orally amend, supplement 
and modify their bid documents after the bid opening. 

Mr. Suzuki concluded by saying that although their is no way to tell 
what the bids would have been were there no bid preference it is 
still undeniable that a prime concessionaire operating the space by 
itself under a sublease arrangement would have been able to submit a 
higher bid. He said that it is also true that the structure 
currently offered by the highest bidder was characterized by HRC as 
providing a very limited role for its minority partner, who would 
occupy approximately 10 percent of the concession space in a 
subtenant capacity. If the Commission accepts the bid of the current 
high bidder they will be accepting an arrangement which results in 
reduced revenue to the Airport in exchange for a structure which does 
nothing to advance any affirmative action purpose. He urged the 
Commission to exercise its discretion to reject all bids and rebid 



Minutes, March 3, 1987, Page 9 



the concession even if the determination of the HRC Director is 
accepted. 

Commissioner Bernstein asked Ms. Givens if she wished to address the 
Commission. 

Ms. Marsha Givens, President of ABC Cigar Company, said that her 
company has been operating at the Airport for over 30 years. They 
operated shops in the International Terminal in the 1950' s and are 
now operating the news/gift concession and a candy/flower shop in the 
North Terminal. During the past four years the company has been 
under her direction and owned by her mother, Mrs. Marsha Lahey. Her 
four sisters operate and work within various capacities in the 
company and serve on their Board of Directors. She said they are a 
local company and have resided in San Francisco since 1910. ABC 
Cigar employs about 30 people, mostly women and minorities, and 
during the last four years they have become substantially more 
profitable. 

Ms. Givens believed that ABC Cigar should be awarded this lease as 
they meet the requirements of financial ability, experience and WBE 
certification. She said that it was stated at the pre-bid conference 
that this principal concession, being smaller than the others 
previously awarded, was a good opportunity for a minority or a 
woman-owned business to operate. If all bids are rejected and the 
minority and woman-owned requirements are thrown out the original 
intent of the bid will be undermined. 

Ms. Givens added that the Airport would not be losing substantial 
revenue in accepting ABC Cigar's bid as their bid was only $61,000 
less than Host's, $12,000 less than Duty Free's and a substantial 
$500,050 over the minimum annual guarantee of $500,000. She told the 
Commission that Cahill Construction assured them that their shops can 
be open and operating by July, the prime summer months. She added 
that two years ago they remodeled the San Francisco Expression Shop 
and operated a limited news/gift concession during its construction. 

Mr. Turpen said that his recommendation was to reject all bids, 
modify the specifications and rebid the concession. 

Commissioner Tsougarakis felt that there has been too much ambiguity 
during this bid process. She said that a lot of questions have 
surfaced and agreed that a new bid would be in order. 

Commissioner Fleishell agreed. He said that it was tragic that major 
companies who have done business for years at the Airport have not 
been able to deal with our rules. He agreed that the staff report 
was completely contrary to the conclusion reached by the Director of 
HRC. He regretted that this would put the third bidder at a 
disadvantage but he felt that everyone must be taken into considera- 
tion. He said that there must be a clarification on how a bidder 
complies with HRC requirements. 

Mr. Turpen said that there will be two changes in the specifica- 
tions: the minimum bid will be $700,000 and the requirement of a 25 
percent minority/10 percent woman set aside will be eliminated. He 
said it would be bid as a straight business opportunity, subject only 
to those sections of the Administrative Code that are presently 
applicable within the City of San Francisco. 

Commissioner Fleishell said that the City Attorney has sent the 
Airport a letter indicating that Host and Duty Free have been 
disqualified and although the Commission usually follows the City 
Attorney's advice, they are not bound to it. However, as a matter of 



Minutes, March 3, 1987, Page 10 



policy, they do follow HRC's recommendations. While the Commission 
sometimes disagrees with their conclusions he did not feel that one 
agency should be at war with another. He said he would reluctantly 
vote to reject al 1 bids. 

Commissioner Bernstein agreed that the Commission did not have a 
choice in this matter. 



The following item was removed from the calendar. 

4. Award of Boarding Area 'E' Principal Concessoin Lease 

Resolution awarding Boarding Area 'E' 
Principal Concession lease. 

The following item was unanimously adopted. 

5. SFO Airporter Request for Change in Permit Fee 

No. 87-0031 Resolution denying SFO Airporter's 

request for change in permit fee. 

Mr. Turpen reminded the Commission that Mr. Steve Leonoudakis had 
requested a change in SFO Airporter's operating permit to reduce 
their fee. He recommended denying request. 

Mr. Gordon Esposto, General Manager of SFO Airporter, told the 
Commission that Airporter is in direct competition with SuperShuttle 
for passengers. He told the Commission that SuperShuttle pays 6 
cents per passenger while Airporter is required to pay $1.02 per 
passenger. He said that Airporter's patronage continues to diminish 
and pleaded with the Commission to allow them to base their fee on 
their revenue not on the deplaned passenger figure. 

Commissioner Bernstein asked Mr. Esposto if Airporter would move to 
the upper level . 

Mr. Esposto responded that the move would be worth something but not 
eight times what the other carriers were paying. He said Airporter 
pays 3-1/2 cents per deplaned passenger but some of those passengers 
utilize the services of their competition. 

Mr. Turpen responded that this permit can be cancelled by either side 
with 30-days notice. He hoped that SFO Airporter would move with the 
Airport as expeditiously as possible in getting the new Airport Motor 
Coach Service Agreement bid in order and lay this question to rest. 
He did not think that after holding significant public hearings the 
Commission should change the rate structure for this permit based on 
a request from the permittee. He said that the next change will be 
when this matter is bid and whatever calculation and method of 
payment is contained in the new bid document will then be what 
appl ies. 



Funding Authorization - Arts Commission 

87-0032 Authorization to Fund $10,000 for the 

Arts Commission - Fiscal Year 1986-87 

Mr. Turpen told the Commission that this fund will provide for a 

Minutes, March 3, 1987, Page 11 



conservator's inspection of the Airport's permanent art collection 
and clean those works of art requiring attention. He said that these 
funds should be provided on a one-time only basis pending the Art 
Commission's development of a City-wide art maintenance program in 
which the Airport would participate. 

Commissioner Bernstein felt that since the Airport owned these pieces 
of art they should be kept in order. 

Mr. Turpen agreed but told Commissioner Bernstein that maintenance of 
art works is the responsibility of the Art Commission. He said that 
if they are not doing their job then they should be encouraged to do 
so. If they want to abdicate their responsibility to the Airport we 
would be happy to buy the art, install it and maintain it. 



7. Authorization Agreement for Parking/Transportation Management Services 

87-0033 Authorizes Director to enter into 

agreement with RIDES for Bay Area 
Commuters, Inc. to provide San 
Francisco International Airport with 
employee-oriented Parking/Transpor- 
tation Management Services. 

Commissioner Fleishell said that although this is something the Mayor 
wants he came across an article about five major transit agencies 
that are losing hundreds of thousands of riders due to the drop in 
the price of gasoline. He said he talked to BART, the Golden Gate 
Bridge District and Muni and they do not think this program is a good 
idea at this time because people want to drive their cars. He agreed 
that this firm does good work but the concensus of the people he 
talked to in the transportation industry who have tried to encourage 
this program could not get their employees out of their cars, even 
when offered various types of incentives. 

Commissioner Fleishell told the Commission that a record number of 
cars are being sold and last month the record for gasoline sales was 
broken in California. He said that someone should check the benefits 
of this program and suggested that the Mayor might be getting bad 
advice on this. 

Commissioner Tsougarakis said that Commissioner Fleishell might be 
correct however she felt that the Airport had some specific needs 
relative to the parking lots and there should be immediate relief of 
the problem. She said that this will pay for itself as space will be 
freed up for long-term parking. She felt that even if the. Airport 
realizes only half of the 1600 spaces the organization estimates It 
would mean quite a bit of revenue. 

Commissioner Fleishell suggested monitoring the program. 

Commissioner Tsougarakis agreed and said she looked forward to a 
six-month report. 

Commissioner Bernstein, referring to the specifications in the 
contract, asked why the number of hours to be worked was mentioned. 
He did not understand what difference it made as long as the contract 
is completed. 

Mr. Sheldon Fein, Landside Operations, responded that part of the 
requirement is that RIDES must supply a full-time employee to work at 
the Airport for a period of 18-months and RIDES was simply trying to 
clearly define the terms. 

Minutes, March 3, 1987, Page 12 



Rejection of All Bids - Contract No. 1564: 
Rehabilitate Drainage Pump Station No. 1 

No. 87-0034 Resolution rejecting the four bids 

received for Contract No. 1564. The 
Human Rights Commission has determined 
that the bidders were non-responsive. 

Commissioner Flei shell said that this was another example of a 
company who has been in business for years and done work for the 
Airport yet could not comply with HRC's MBE/WBE goals. He said that 
time and money has been wasted and something must be done to correct 
the confusion. 

Commissioner Tsougarakis asked if an HRC representative attends the 
pre-bid conferences. 

Mr. Turpen responded that there is an HRC representative at the 
Airport who attends them. 

Commissioner Tsougarakis recommended that this be dealt with by the 
Director. She said that there should be agreement ahead of time as 
to what the rules are and those rules should be followed. She said 
she did not know how that could be accomplished but offered to attend 
a meeting with Mr. Turpen and Mr. Mickens. 

Mr. Turpen asked that staff have an opportunity to take a look at 
it. He said there are so many aspects to this subject that while it 
is possible to establish a definition ahead of time, situations can 
arise that shed an entirely different light on the matter. 

Mr. Turpen said that the staff will continue to do the best it can in 
advising bidders. He said that most contracts go through in a 
straightforward manner. 



Bid Call - Contract No. 1802: 

Extend Blast Fence, Taxiway 'A' at Road R-16 

No. 87-0035 Resolution approving bid call for 

Contract 1802 to extend existing blast 
fence between Taxiway 'A' and Service 
Road R-16 to eliminate jet blasts from 
PSA's aircrafts. 



10. Award of Contract No. 1435B: 

Reconstruct Taxiways 'A' and 'B', Phase II 

No. 87-0036 Resolution awarding Contract No. 1435B 

to Ghilotti Bros., Inc. in the amount 
of $2,076,410.00 

Six bids were received on January 28, 
1987 ranging from $2,076,410.00 to 
$2,529,381 .00. 



Minutes, March 3, 1987, Page 13 



11. Renewal Options for Rental Car Concession Agreements 

No. 87-0037 Five resolutions authorizing the 

No. 87-0038 fourth one-year option for each of the 

No. 87-0039 current rental car operators. 

No. 87-0040 

No. 87-0041 



Item No. 12 was put over for 30-days. 

12. Electronic Security Door System Project - $2-Mi 1 1 i on 

Resolution authorizing the addition of 
the Electronic Security Door System 
Project to the Airport's Five-Year 
Capital Projects Plan. 

Commissioner Bernstein asked Mr. Paul Van Wert if he wished to 
address the Commission. 

Mr. Van Wert, Chairman, Airport-Airline Affairs Committee, asked the 
Commission for a 30-day postponement to consider the inclusion of 
this item in the capital plan. He said that although blame can be 
placed on both sides he believed the consultative process between the 
airlines and the Airport staff has fallen apart on this project. He 
said that staff did bring it to the Committee's attention five-months 
ago, not six, so they are entitled to an additional 30 days of 
consideration based on the terms and conditions of the Lease and Use 
Agreement. 

Mr. Van Wert explained that since staff was unable to answer all the 
questions asked of them five-months ago the Committee was unable to 
consider it at that time so he did not think the clock started 
running in the Lease. He said that five or six months have gone by 
and the airlines were unaware that staff wanted to proceed with this 
project. Last week the Committee received a letter indicating that 
the six months were up and this item would be presented to the 
Commission. He requested the 30-days for review and promised the 
Commission and staff a meeting to deal with this matter so the 
Committee could comment on this project. He said he did not know a 
lot about this subject and suspected that only two airlines were 
aware that staff wanted to proceed. 

Commissioner Tsougarakis asked if a postponement presented a problem. 

Mr. Turpen responded that it would not be a problem. 



The following items were unanimously adopted. 

13. Establishment of Narcotics Forfeiture Fund for Airports Police 

No. 87-0042 Resolution approving and recommending 

adoption of Board of Supervisors 
amendment to San Francisco Administra- 
tive Code to establish and authorize 
receipt and expenditure of funds from 
Airport Police Narcotics Forfeiture 
Fund. 

Mr. Turpen told the Commission that this is an administrative 
Minutes, March 3, 1987, Page 14 



requirement of the Controller that a fund be established to handle 
the receipt of monies forwarded to the Airport by the Federal 
Government as part of the Narcotics Forfeiture Program. 

Commissioner Flei shell asked who would make withdrawals from the 
account. 

Mr. Turpen responded that this is an Airport account. 



14. Annual Renewal of Professonal Services Contract with O'Brien- 
Kreitzberg & Associates, Inc. 

No. 87-0043 Resolution approving renewal of 

professional services contract with 
O'Brien-Kreitzberg & Associates, Inc. 
to continue to provide scheduling, 
cost control, inspection and 
monitoring services, and to provide 
personnel and equipment resources for 
the Airport's Modernization and 
Replacement Program - Budget for 
12-month contract period: $776,000 

Commissioner Fleishell said that O'Brien-Kreitzberg seems to be doing 
a good job. 

Mr. Turpen said that there will be one more to conclude the M & R 
Program. 



H. CONSENT CALENDAR OF ROUTINE ADMINISTRATIVE MATTERS: 

The following items were unanimously adopted. 

15. Retirement Resolution: 
Conrad I. Ryndik 

No. 87-0044 



16. Retirement Resolution: 
Yong Hon "Bob" Lee 

No. 87-0045 



17. Retirement of the Honorable Joseph P. Bort from the Metropolitan 
Transportation Commission 



No. 87-0046 



Commending the Hon. Joseph P. Bort on 
his retirement from the Metropolitan 
Transportation Commission, his vacat- 
ing the Chair of the ABAG/MTC Regional 
Planning Committee which he has 
occupied for the last 13 years, for 
the significant impact he has provided 
the Airport's surrounding communities, 
and the development of the SFO. 



Minutes, March 3, 1987, Page 15 



Declaration of Emergency - Water Main & Pavement Repair 
Contract No. 1776 

No. 87-0047 Resolution ratifying the action of the 

President of the Commission in 
declaring the emergency in water main 
and pavement failure at the Northeast 
Court between Boarding Area 'E' and 
the International Terminal, and 
directing the Director of Airports to 
effect the necessary repairs. 



19. Declaration of Emergency - Electrical Duct Repair 
Runway 1R-19L at Taxiway 'F' 
Airport Contract No. 1772 

No. 87-0048 Resolution ratifying the action of the 

President of the Commission in 
declaring an emergency in electrical 
duct failure at Runway 1R-19L and 
Taxiway ' F ' intersection, and 
directing the Director of Airports to 
effect the necessary repairs. 



20. Approval of Claims Settlement 

No. 87-0049 Resolution approving the Settlement of 

Claims not exceeding $2,500.00 for the 
period July to December, 1986. Total 
Claims: $10,213.65 



Design Review Approval for Automatic Teller Machines Enclosure in the 
South Terminal 

No. 87-0050 Resolution approving the schematic 

design of the enclosure for Automatic 
Teller Machines in the South Terminal. 



22. PSA Ground Support Equipment Facility - Plot 1 
T-3220 - $250,000 - No Cost to City 

No. 87-0051 Resolution approving PSA's conversion 

of a portion of existing building in 
Plot 1 for ground equipment 
maintenance. 



23. Continental Airlines Cargo Facility Plot 10 

Conversion of Existing Hangae for Air Cargo Handling 
T-3138 - $200,000 - No Cost to City 

No. 87-0052 Resolution approving Continental 

Airlines' proposed conversion of 
existing Hangar on Plot 10 for Air 
Cargo Handl ing. 



Minutes, March 3, 1987, Page 16 



24. Type II Modification for Contract 1432A: 

Relevel Runway 28R, Extend Taxiway 'K' and Fillets of Taxiways 'D' 
and 'R' 

No. 87-0054 



25. Travel/Training for Airports Commission Representatives 
No. 87-0053 

* * * 



I. CORRESPONDENCE: 

There was no discussion by the Commission. 



* * * 



K. ADJOURNMENT TO GO INTO CLOSED SESSION: 

There being no further calendared business before the Commission the 
meeting adjourned at 10:25 AM to go into closed session. 



(J fa. C(UUL (ujL 

iean Caramatti 
Commission Secretary 



Minutes, March 3, 1987, Page 17 






SAN FRANCISCO 
AIRPORTS COMMISSION 




MINUTES 



DOCUMENTS DEPT. 

MAY 13 1987 

SAN FRANCISCO 

Dl IRI ir>. \ IRP Any/ 



MARCH 17, 1987 



DIANNE FEINSTEIN, MAYOR 

COMMISSIONERS 

MORRIS BERNSTEIN 

President 

J. EOWARO FLEISHELL 

Vice-President 

DR. Z.L. GOOSBY 

ATHENA TSOUGARAKIS 

DON RICHARDS STEPHENS 



LOUIS A.TURPEN 

Director of Airports 



San Francisco International Airport 
San Francisco, California 94128 



Index 

of the Minutes 

Airports Commission 

March 17, 1987 



CALENDAR 
SECTION 


AGENDA 
ITEM 


TITLE 


A. 




CALL TO ORDER 


B. 




ROLL CALL: 



RESOLUTION 

NUMBER PAGE 



3 



DIRECTOR'S REPORTS 

Airport Motor Coach Service 

Agreement Pre-Bid Conference 3-7 



ITEMS INITIATED BY COMMISSIONERS: 

Human Rights Commission 

Responsibilities 87-0068 7-8 



E. PENDING LEGISLATION: 



Report on AB 267, SB 263, AB 495 
and AJR 10 



AGENDA ITEMS RELATING TO ADMINISTRATION, 
OPERATIONS & MAINTENANCE: 

Resolution Approving Assignment 

of Citicorp Lease - Foreign 

Currency Exchange 87-0055 8-11 

Resolution Rejecting Bid for 
International Terminal Shoe- 
shine Lease 87-005* 11-12 

Rental Credit - Amlock, Inc 87-0057 12 

Resolution Exercising Option 

and Establishing a New Rental 

Rate - United Airlines. Plot 6 87-0058 12 

Renewal Option for Lease of 

Entertainment Center/Video 

Game Room in the North 

Terminal 87-0059 12 

Resolution Approving Design 

Review of Cafeteria 87-0060 13 



9. Tenant Improvement: Host 
International, Inc. - Crab 
Pot Restaurant and North 
Beach Deli Remodel - North 
Terminal - $160,000 - No 
Cost to City - T-3228 87-0061 13 



G. CONSENT CALENDAR OF ROUTINE 

ADMINISTRATIVE MATTERS: 

10. Retirement Resolution: 

Ferris Fong 87-0062 13 

11. Resolution Regarding the 
Departure of Air Traffic 
Control Supervisor David R. 
Bahem from the Federal 
Aviation Administration 

Office in SFIA 87-0063 13 

12. Declaration of Emergency: 
Drainage Pipe Repair - Parking 

Lot 'C - Contract No. 1779 87-0064 13 

13. Contract No. 1585R: Emergency 
Security Fencing Repairs (1985- 

86) - Type II Modification 87-0065 14 

14. Resolution Modifying Mexicana 
Airlines' Lease and Use Agree- 
ment 87-0066 14 



CORRESPONDENCE: 14 



ADJOURNMENT TO GO INTO 

CLOSED SESSION: 14 



Minutes, March 17, 1987, Page 2 



Minutes 

of the 

Airports Commission Meeting 

March 17, 1987 



CALL TO ORDER: 

The regular meeting of the Airports Commission was called to order at 
9:05 A.M. 1n Room 282, City Hall, San Francisco, Ca. 



B. ROLL CALL: 

Present: Morris Bernstein, President 

J. Edward Flelshell, Vice President 
Z. L. Goosby 
Athena Tsougarakls 
Don Richards Stephens 



DIRECTOR'S REPORTS: 

The following Item was put over to the next meeting. 

1. Airport Motor Coach Service Agreement Pre-BId Conference 

Report on Airport Motor Coach Service 
Agreement pre-b1d conference and 
proposed revised specifications. 

Mr. Lou Turpen, Airport Director, said that the pre-bld conference 
was conducted per the Commission's direction. His memo to the 
Commission contains comments made by the attendees as well as staff's 
ideas at that time. 

Mr. Turpen said that at the same time a pre-bld conference was being 
conducted staff was also responding to a Commission direction to do 
an evaluation of the use of the Airport roadway system 1n terms of 
congestion and a number of other things. Staff feels 1 t 1s Important 
to factor that analysis, which has recently been concluded. Into the 
Airport Motor Coach Service Agreement. He asked the Commission to 
allow staff to return in two weeks with suggestions as well as input 
from the pre-bid conference. 

Commissioner Goosby asked If these were recommended revisions to the 
specifications. 

Mr. Turpen said that was correct. He said that the current 
evaluation of the roadside leads staff to believe that some other 
alternatives might be prudent. In that event it might be appropriate 
to have a second pre-bld conference to address those things that 
might be changed. 



Minutes, March 17, 1987, Page 3 



Mr. Turpen recommended that this matter be put over for two weeks In 
order to give staff the opportunity for further review. If the 
Commission wishes to change or Incorporate any Ideas, staff can 
handle it at that time. He said that there would then be a mini 
pre-bid conference to address those changes from the basic specifi- 
cations and after which time the bidding should move ahead fairly 
quickly after that. 

Commissioner Goosby asked If the specifications have been worked out 
as a result of the pre-bid conference and if they reflected staff's 
tentative recommendations. 

Mr. Turpen responded that staff tried to define the issues and 
capture the attendee's comments. Rather than make recommendations, 
staff offered their reactions to the pre-bid conference. He said 
that staff wanted to share this Information with the Commission and 
remind them that a pre-bid conference had been conducted and that 
staff was proceeding as directed. 

Mr. Turpen said that there may be changes to the specifications and 
commenting on them at this time would be premature. He said that 
within the next couple of weeks there will be a revised set of 
specifications which can be addressed far more productively. 

Commissioner Goosby said that the speakers have a right to address 
the Commission unless they voluntarily withdraw their names. 

Commissioner Tsougarakis added that speakers should understand that 
any comments they wish to make to the Commission will be made on 
out-dated information. If speakers would rather defer until the next 
meeting it would probably work out better for everyone. 

Mr. Turpen suggested calling on the speakers to see If they wished to 
address the Commission at this time. 

Commissioner Bernstein asked Mr. Richardson of Luxor Cab If he wished 
to address the Commission. 

Mr. Richardson said that he would not address the Commission at this 
time. 

Commissioner Bernstein asked Mr. Gordon Esposto if he wished to 
address the Commission. 

Mr. Esposto, General Manager of SFO Alrporter, told the Commission 
that he has operated that service at the Airport for 22 years. He 
said that the specifications Issued this week merged the van 
operation with the bus operation and felt this would effect each and 
every facet of ground transportation at the Airport. He explained 
that at the present time there Is a taxicab operation, limousine 
operation and van operators on the upper level; the bus operation 1s 
on the lower level, inside curb. 

Mr. Esposto said that he has a transcript of the pre-bid conference, 
which he attended, and told the Commission that there were many 
Issues discussed at that meeting that are not addressed In the staff 
recommendations. Among them was the move of the operation to the 
courtyards which would force passengers to claim their baggage and 
walk hundreds of yards. Another is moving the bus operation to the 
center Island on the outer roadway. Yet another is the number of 
buses. He said that these specifications have been discussed for the 
past three or four years and at one pre-bid conference the entire 
contract was changed. 



Minutes, March 17, 1987, Page 4 



Mr. Esposto said that Airporter feels that payment to the City should 
be based on the percentage of the operator's revenue, not on the 
number of deplaned passengers or the $400,000 annual minimum. 

Mr. Esposto felt that these specifications were tailored to 
SuperShuttle. If they were to move their operation to the lower 
jevel it would eliminate Airporter, and a lot of the cab and 
limousine operations. He said that if SuperShuttle were not the 
successful bidder they would continue to operate on the upper level 
and demand for that service would far exceed any on the lower level. 
He said that if SuperShuttle were the successful bidder they would 
move their operation to the lower level. 

Mr. Esposto said that another area not discussed was the patronage 
that would be demanded and the number of van trips that would be 
necessitated. He felt that between 100 and 150 vans would be 
required to move the more than 5000 passengers each day and that an 
enrivonmental impact report should be required. Over the last 20 
years Airporter has found that at certain times up to 600 passengers 
must be moved 1n an hour yet the present specifications require only 
25 vans and six buses. 

Mr. Esposto felt that there should be a new pre-bid conference as 
well as an entire new bidding process. 

Mr. Turpen said that he appreciated Mr. Esposto' s speculation on what 
might happen however he felt that at this point such speculation 1s 
premature. Staff will return to the Commission with specifications 
that can be discussed more realistically. 

Commissioner Bernstein asked Mr. Somers if he wished to address the 
Commission. 

Mr. Somers said that if vans are added they should display taxi 
symbols as they would end up functioning as taxis. He has seen this 
on the upper level and said that SuperShuttle is not picking up by 
appointment. He felt that the bus service is doing a wonderful job. 

Mr. Somers urged the Commission to reconsider and not Include vans 1n 
the pre-bid documents but continue In the current fashion. 

Commissioner Bernstein asked Mr. Steve Leonoudakls, SFO Airporter, to 
address the Commission. 

Mr. Leonoudakls said that the document on ground transportation had 
no resemblance to the report dated March 6 from the Director to the 
Commission. He said that there is a transcript of the pre-b1d 
conference, at which ground transportation was discussed, that 
covered a myriad of problems. He urged the Commission to read the 
transcript. He felt that the summary presented by the Director was 
written for SuperShuttle. 

Mr. Leonoudakis said that the pre-bid conference attendees wanted to 
amend the agreement to Include language stating that the Commission 
would control unauthorized ground transportation operators. He 
quoted Mr. Turpen as saying that there need not be an amendment; the 
language to that effect is in the Airport Rules and Regulations which 
are made a part of the agreement. Mr. Leonoudakis said that 
ordinarily when rules are made part of an agreement they are attached 
as an addendum, like other exhibits. He asked the Commission to 
attach the rules to the document as an exhibit; he does not want them 
implied. He said that the successful bidder will have to pay the 
Airport and in return the Airport must control the traffic and 
enforce the rules. He told the Commission that he talked to 



Minutes, March 17, 1987, Page 5 



Mr. Garibaldi this morning and Mr. Garibaldi was opposed to this. 

Mr. Leonoudakis said that Mr. Turpen feels that passengers coming to 
the Airport should have freedom of choice in deciding how they get to 
the City. Mr. Leonoudakis agreed that all of the transit options 
(bus, limousine, taxi, and van) should be preserved but if peace and 
harmony are to be preserved among the operators the vans should not 
be allowed to operate in the taxi area. He explained that if all the 
vans are placed on the lower level, at least 125 to 150 will be 
needed. He said that this document allows them to solicit in the 
terminals, gives them first opportunity with the customer, and 
provides curbside parking adjacent to the courtyard. In addition, 
they will have the lowest fare and operate on-demand, just like 
taxis. 

Mr. Leonoudakis agreed with the previous speaker who argued that 1f 
vans operate like a taxi service they should display taxi symbols. 
He said that a passenger will opt for a $7.00 van fare as opposed to 
a $22.00 limousine ride, or a $25.00 cab ride. He said that the taxi 
service will be destroyed, and with 1t, passenger options. 

Mr. Leonoudakis urged that if the Commission wants a van component 
they should operate upstairs and a van-only contract should be bid on 
a percentage basis. He felt that each transit option could operate 
in its own space. The buses could operate downstairs, the vans 
upstairs, and the taxis and limousines in their current locations. 
This would afford the Airport another opportunity for revenue. 

Mr. Leonoudakis also complained that the document doesn't call for a 
percentage of gross it calls for a minimum. He said that 
SuperShuttle claims they will eventually operate all over the Bay 
Area, much the same as they operate in Los Angeles. He said that 1f 
they are put downstairs curbside on the Inner roadway with first shot 
at the passengers they will create a tremendous amount of business 
and the dollar volume will be huge. He felt they should pay a 
precentage of a possible $l0-m1llion with $1.2-milHon for the City, 
as opposed to 3tf per deplaning passenger or $360,000 for the City. 

Mr. Leonoudakis said that this document In no way resembles what he 
thought would be discussed at this stage of the procedure. He said 
that the original document Indicated there would be a configuration 
of a minimum of 12 buses; now 1t 1s down to six buses. 

Mr. Turpen reminded the Commission of Its three minute rule. He felt 
it important that there be no speculation. 

Mr. Leonoudakis added that the one thing left unawswered at the 
pre-bid conference was the question of prevailing wage. - 

Mr. Leonoudakis concluded his remarks by saying that the Commission 
wants to pre-quallfy and certify all the bidders and then wants the 
bidders to submit an operating plan. He urged the Commission to 
obtain those operating plans before and during the pre-qual Ifylng 
process, not after. 

Commissioner Bernstein asked for a copy of the transcript to which 
Mr. Leonoudakis referred. 

Mr. Turpen said he appreciated Mr. Leonoudakis' s interest and 
applauded his desire to insure that the resulting contract will be 
one in which he feels he can be competitive. He reminded the 
Commission that Mr. Leonoudakis spent many hours testifying before 
them with a singular orientation but staff has the responsibility to 
provide a more balanced view. 



Minutes, March 17, 1987, Page 6 



Commissioner Bernstein asked Mr. Joseph Musacchia if he wished to 
address the Commission. 

Mr. Musacchia said that cab drivers pay $1.50 each time they run 
through the Airport. He said that if 10 or 12 passengers are being 
loaded into a SuperShuttle van at the curb, taking away business from 
taxicabs, this option for a van will ultimately result in a loss of 
revenue to the Airport. 

Mr. Musacchia said that there will also be a congestion problem. 
During peak hours there is heavy congestion and a van service on the 
lower level will increase that congestion. He said that there are 
plenty of cabs in the staging area, the problem is getting them to 
the curb. As an alternative to placing the vans on the lower level, 
he recommended trying to figure out some way to bring the existing 
transportation to the customers more expetitously. 

Commissioner Bernstein asked Mr. Hal Muskat if he wished to address 
the Commission. 

Mr. Muskat declined to speak. 

Commissioner Bernstein said that this item would be put over for two 
weeks. 



ITEMS INITIATED BY COMMISSIONERS: 

Commissioner Fleishell said he sent a memo to the Commission resulting 
from the Commission's rejection of all bids on the principal 
concessionaire proposal at the last meeting. He said he talked with 
representatives from the City Attorney's Office and found that the reason 
the bids had to be rejected was because neither Host nor Duty Free could 
get an approved contract after weeks of negotiating with the Human Rights 
Commission. He suggested an advance approval of contracts. He indicated 
that the City Attorney's Office thought it was a good idea and they 
suggested adopting a resolution requesting that the Director of Airports 
meet with the Director of HRC to work out an advance system for these 
types of agreements. In order to effect this he asked the Commission to 
waive Its rule prohibiting an uncalendared item from being adopted so that 
action could be taken. 

Commissioner Fleishell also suggested that rather than just having the 
Individual contract, articles of Incorporation, etc., the Airport, or 
preferably the HRC, create a file of approved contracts so that when the 
smaller bidder wants to bid he doesn't have to hire lawyers to draw up 
contracts. 

Commissioner Goosby agreed adding that there 1s some confusion as to what 
constitutes a legitimate joint venture. 

Commissioner Fleishell said that once there is an approved form of 
agreement a party can use that agreement and make whatever changes are 
appropriate and note them in the transmission document. 

Commissioner Goosby noted that Commissioner Fleishell 's memo omitted the 
Local Business Enterprise and asked If it was an Intentional omission or 
was It assumed that all three categories would be considered. 

Commissioner Fleishell responded that his experience indicated that the 
LBE doesn't seem to have the same kinds of problems because any new joint 



Minutes, March 17, 1987, Page 7 



venture is automatically a local business enterprise. He said that most 
of these joint ventures were invented yesterday and have zero experience 
but since they were formed here they are, by definition, be a local 
business enterprise. He added that he would welcome any improvement on 
his recommendation. 

Commissioner Goosby said that there was a discussion several years ago 
about getting bidders together to try to eliminate problems with technical 
omissions. 

Commissoner Fleishell said that he made a motion for bifurcated bidding at 
that time. He also suggested that any approved agreement should contain 
language forbidding any amendment or change in the approved document 
without the prior written consent of both the Airports Commission and the 
HRC. He said it would also make invalid any side agreements. He 
explained that artful entrepreneurs will have an agreement and a side 
letter denying certain material provisions. 

Commissioner Fleishell asked that he be given the written resolution for 

review. 

The Commission unanimously voted to waive the rule and then unanimously 
adopted Commissioner Fleishell 's resolution. 

No. 87-0068 



PENDING LEGISLATION: 

2. Report on SB 267, SB 263, AB 495, AB 482 and AJR 10 

Commissioner Fleishell said this was not a report but rather a 
summary of what the bills say; nor does It deal with their status 1n 
the legislature. 

Commissioner Fleishell said there were two additional bills, AB 1398 
and AB 1065. He said that AB 1065 is very important and should be 
carefully looked at. He felt that someone should be doing a legal 
analysis of these bills. If the attorney for Orange County had not 
analyzed the one noise bill the Airport probably would have supported 
it instead of opposing it. 



F. AGENDA ITEMS RELATING TO ADMINISTRATION, OPERATIONS & MAINTENANCE: 

The following item was adopted in three phases by the Commission: Motion 
to approve the most favored nation clause was approved unanimously; the 
motion to eliminate Citicorp's guarantee was approved by a 4-1 vote with 
Commissioner Goosby casting the dissenting vote; and, the motion to 
approve the assignment was unanimously adopted. 

3. Resolution Approving Assignment of Citicorp Lease - Foreign Currency 
Exchange 

No. 87-0055 Resolution authorizing Citicorp 

(U.S.A.), Inc. to assign Its Foreign 
Currency Exchange Lease to Bank of 
America, N.T.& S.A. 



Minutes, March 17, 1987, Page 8 



Commissioner Stephens asked if the contract stipulates that Citicorp 
must guarantee the obligations of the Bank of America. 

Mr. Turpen responded that after having written this memo, which was 
written before staff had had the opportunity to sit down with the 
parties involved to work some of these issues out, some conditions 
were placed designed to look at the opportunities that might be 
created by such an assignment. He said that the one issue he 
recommended be retained was to obligate Citicorp to remain on the 
lease. He said that there is a Commission policy that anyone 
assigning a lease must remain on the lease. He said that last night 
he spoke with Mr. Didier of the Bank of America about this and with 
Mr. Pawnell of Citicorp as well and recommended that the assignment 
be approved with that condition. He also recommended that Mr. 
Didier' s letter to Commissioner Bernstein, dated March 16, 1987, be 
made part of the record and that Mr. Didier has consented to its 
inclusion. 

Commissioner Stephens said that someone from the bank called him and 
this issue seems to be of great importance to them. He said that 
this gentleman had two requests: that Citicorp not remain on the 
lease. Commissioner Stephens said that while this was not an 
important issue to him it seemed to be important to the bank. The 
second is that the favored nation clause, stipulating that whatever 
rates are offered downtown must be offered at the Airport, be 
eliminated. Commissioner Stephens said he was opposed to that. He 
felt it was an important provision. 

Mr. Turpen said that a letter received last night from the Bank of 
America stated that "as a matter of policy we will continue to 
provide the same foreign exchange rates both at the Airport and at 
our downtown location". He said that the Banks commitment in their 
letter would be satisfactory to him. 

Commissioner Stephens said it would not be satisfactory to him as a 
contract is within the Airport's ability to enforce it, and a matter 
of policy is within the Bank of America's ability to change it. He 
said he did not see any reason why they would change it but as long 
as they agree to charge the same rate at the Airport we should be 
protected by contract. 

Mr. Turpen responded that that is not in the assignment. The assign- 
ment was received late yesterday and Mr. Garibaldi has reviewed it. 
The assignment releases Citicorp from any liability under the 
contract. He again said that in past years when the Commission got 
into discussions as to who should remain on a lease and who should 
not, the Commission made 1t a rule that everyone would remain. 

Commissioner Stephens said that staff has requested that the bank not 
be allowed to do foreign exchange at domestic banking offices. He 
asked if they are currently permitted to do this. 

Mr. Turpen responded that of all the conditions before the Commission 
the only one that remains outstanding In his mind is the assignment 
of Citicorp. In response to Commissioner Stephens, Mr. Turpen 
replied that the Bank of America has the right to sell foreign 
currency from its domestic banking operation in the International 
Terminal. He said that one of the options is that it be moved so 
that there would not be a conflict between domestic banking and 
foreign exchange and the queing problems would be alleviated. He 
said that the Bank has evaluated It and assured staff that it would 
not be a problem so he no longer objects. 



Minutes, March 17, 1987, Page 9 



Commissioner Stephens said that seemed to be important to them and he 
did not have any objection to it. 

Commissioner Fleishell said that when the lease documents were bid 
the Commission took a strong position that the banking function be 
kept separate from the foreign exchange function because foreign 
exchange can be conducted by a bank or another enterprise not 
admitted to practive banking in California. He said that if you took 
away the banks right to sell foreign exchange and this was later bid 
again we might end up with exactly what the Airport was trying to 
avoid. 

Commissioner Fleishell remarked that as for having Citicorp give up 
space, legally they have no obligation to do so and he felt the 
Airport would be liable in such a case. 

Commissioner Stephens added that it would also be unfair. 

Commissioner Fleishell said that the pivotal question is whether or 
not Citicorp should remain on the lease. He said he was mindful of 
the Commission's policy but policies are not meant for the 
exception. He said that Bank of America's situation Is unique. 
Rarely has one billion dollar corporation been assigned a nine-month 
lease from another billion dollar corporation. He had no concerns 
about the Bank of America's ability to handle their lease 
obligation. He feared that if the Commission required Citicorp to 
remain on the lease the press might misconstrue that action and 
conclude that the Commission did not have complete confidence 1n the 
Bank. He said he would not want that to occur in view of the close 
relationship between the Bank and the City. He made a motion to 
remove the condition from the consent of the Commission. 

Commissioner Goosby felt that the Commission should follow its policy 
and Citicorp should remain on the lease. 

Commissioner Stephens said that that same policy probably exists In 
many commercial enterprises, shopping centers, office buildings, 
etc., but the reason for it 1s to ensure that the landlord is going 
to be able to collect his rent due to the possible questionable 
credit of a new enterprise taking over. He felt that since we were 
dealing with two of the largest enterprises in the country 
Commissioner Fleishell might be correct In that we might be giving 
the wrong message by not releasing Citicorp and allowing the Bank of 
America to take It over. 

Commissioner Goosby said that the Airport was not questioning the 
credibility of the Bank of America. He said It was not an important 
point to him but from the standpoint of other businesses operating at 
the Airport he did not feel the Bank of America should be given 
special privileges simply because they are a large operation. 

Commissioner Bernstein did not feel that the Bank was being given 
special consideration. He said there was a certain reason why they 
don't want it. 

Commissioner Goosby asked what the reason was. 

Commissioner Bernstein responded that he did not know; 1t was not for 
him to ask. 

Mr. Turpen said that there were two Issues before the Commission. 
The first Is whether or not to Include a suggestion from Commissioner 
Stephens that we condition this approval upon the Bank guaranteeing 
the same rates as their downtown office. 



Minutes, March 17, 1987, Page 10 



Commissioner Flei shell recommended that the language should read that 
the Bank may not charge rates any higher than downtown, thus giving 
them the opportunity to charge lower rates. 

Mr. Fred Pownall, Citicorp, said that there currently is a provision 
in the lease, section 3,02 that allows the Director to review prices 
charged by entrepreneurs and make objection to those prices, to which 
the lessee is obligated to respond. He said that in this particular 
case if that kind of condition is imposed on the assignment the 
Airport would be amending not only Citicorp's lease, which 1s 
assigned, but the Bank of America's lease as well, which 1s an 
entirely separate transaction and not before the Commission. He said 
that there is a recent California Supreme Court case (December, 1985, 
the Kendall Case) which says that a landlord may withhold consent to 
an assign- ment only where the assignment would be commercially 
unreasonable. He said that commercially unreasonable 1s defined by 
the court to mean that the assignee is not able to take care of the 
rent, change in use, etc. He said that in this instance exactly the 
same situation that the Airport and Citicorp contracted for 1s being 
transferred to the Bank of America. If there 1s a price differen- 
tial, and the Bank of America has represented that there is not one, 
there is a remedy in the lease. The other is that there is a legal 
problem because the condition the Airport Is imposing not only on 
Citicorp's lease, but on the Bank's as well. 

Commissioner Tsougarakis said that we are going from a competitive 
business to a monopoly and all we are trying to do is protect the 
passengers in terms of making sure the rates are appropriate. 

Mr. Turpen, referring to his memo to the Commission, said that Items 
3 and 4 are no longer issues. 

Motion to approve the most favored nation clause. The vote was 
unanimous approval . 

Motion to eliminate Citicorp's guarantee. The motion was approved by 
a 4-1 vote with Commissioner Goosby casting the dissenting vote. 

Motion to approve the assignment. The motion was unanimously 
approved. 



The following items were unanimously adopted. 

4. Resolution Rejecting Bid for International Terminal Shoeshine Lease 

No. 87-0056 Resolution rejecting the bid of 

Clarence Washington for the 
International Terminal Shoeshine Lease. 

Mr. Turpen told the Commission that Mr. Washington bid $3,000 but 
never filed a bid bond and never carried through with the bid process. 

Commissioner Bernstein asked if Mr. Washington Is represented by 
Walter Kaplan. 

Mr. Turpen responded that he is and Mr. Kaplan is a 49 percent 
partner in A Step Up Shoeshine, which is a South Terminal bidder. 

Mr. Turpen said that this will have to be re-bid but was not sure If 
1t should be re-bid right away or if It should remain a month-to- 
month with the existing operator. He said that when the Commission 
first approved the bid it was decided that a dual opportunity should 

Minutes, March 17, 1987, Page 11 



be created. Presently, the existing operator runs the International 
and South Terminals on a month-to-month basis. He said that arrange- 
ment will continue until the South Terminal is bid and then something 
will be set up for the International Terminal. 

Commissioner Goosby said that there are agencies funded by the City 
that provide assistance to small businesses and minority businesses 
in preparing their bid documents, fulfilling the requirements of the 
bid and procuring the bond. He said that Airport staff is familiar 
with some of these organizations and bidders should be told about 
them. 

Ms. Angela Gittens, Deputy Director for Business and Finance, told 
the Commission that in this particular bid, since Mr. Washington was 
new to the bidding process and this was a small business set aside, 
he was given more than one opportunity to submit the bid bond. She 
said that if Mr. Washington had come in with the bond later staff 
intended to ask the Commission to waive that defect, but after having 
been given several opportunities he never submitted the bid bond. 

Ms. Gittens added that staff advises bidders of the organizations 
Commissioner Goosby mentioned on a routine basis. 

Commissioner Goosby asked how this would be re-bid. 

Mr. Turpen responded that because it is a separate bid from the South 
Terminal, and that bid is out, it might be adviseable to keep the 
International Terminal on a month-to-month. He said that this might 
be folded in as a minority opportunity with the Barber Shop lease and 
not kept as a stand alone. He said that staff will have to take a 
look at it. 



Rental Credit - Amlock, Inc. 

No. 87-0057 Resolution approving a rental credit 

to Amlock, Inc., for the removal, 
relocation and space renovation of 
public lockers, In an amount not to 
exceed $40,250. 



Resolution Exercising Option and Establishing a New Rental Rate - 
United Air Lines, Plot 6 

No. 87-0058 Resolution exercising the- option for 

Lease of Plot 6, United A1r Lines, 
Inc., and establlhing a new ground 
rental rate. 



Renweal Option for Lease of Entertainment Center/Video Game Room in 
the North Terminal 

No. 87-0059 Resolution authorizing the final 

one-year option of thelease of 
Entertainment Center/Video Game Room 
in the North Terminal . 



Minutes, March 17, 1987, Page 12 



8. Resolution Approving Design Review of Cafeteria 

No. 87-0060 Resolution approving the design review 

and authorizing Host International to 
renovate the North Terminal Boarding 
Area 'F' Cafeteria. 

Commissioner Goosby thought the idea sounded good. 

Mr. Turpen said that this is part of Host/Marriott's program to 
renovate and upgrade their facilities. 



Tenant Improvement: 

Host International, Inc. - Crab Pot Restaurant and North Beach Deli 

Remodel - North Terminal - $160,000 - No Cost to City - T-3228 

No. 87-0061 

Mr. Turpen said that this remodeling was necessary in order to comply 
with the State health code. 



G. CONSENT CALENDAR OF ROUTINE ADMINISTRATIVE MATTERS: 

The following items were unanimously adopted. 

10. Retirement Resolution: 
Ferris Fong 

No. 87-0062 



11. Resolution Regarding the Departure of Air Traffic Control Supervisor 
David R. Bahem from the Federal Aviation Administration Office in SFIA 



No. 87-0063 



Resolution expressing appreciation for 
the services of Mr. David R. Bahem 
during his tenure with the San 
Francisco International Airport's 
Federal Aviation Administration Office 
and best wishes for his appointment as 
Air Traffic Manager, Hayward Tower. 



12. Declaration of Emergency: 

Drainage Pipe Repair - Parking Lot 'C 
Contract No. 1779 



No. 87-0064 



Resolution ratifying the action of the 
President of the Commission In 
declaring the emergency in drainage 
pipe failure at Parking Lot 'C and 
directing the Director of Airports to 
effect the necessary repairs. 



Minutes, March 17, 1987, Page 13 



13. Contract No. 1585R: 

Emergency Security Fencing Repairs (1985-86) 
Type II Modification 

No. 87-0065 Resolution approving contract 

modification to extend time of 
completion for 6 months. 

This contract provides for fence 
repair service on an as-needed basis 



14. Resolution Modifying Mexicana Airlines' Lease and Use Agreement 

No. 87-0066 Resolution modifying the Exclusive Use 

space Included 1n the Mexicana 
Airlines' Lease and Use Agreement. 



H. CORRESPONDENCE: 

There was no discussion by the Commission. 

* * * 

J. ADJOURNMENT TO GO INTO CLOSED SESSION: 

There being no further calendared business before the Commission the 
meeting adjourned at 10:05 AM to go Into closed session. 



Jeijfn Caramattl 
Cd/imission Secretary 



Minutes, March 17, 1987, Page 14 



m 



Bank of America 

San Francisco Headquarter* 

March 16, 1987 



Honorable Morris Bernstein 

President 

Airports Commission 

San Francisco International Airport 

San Francisco, CA 94128 



Dear Mr. Chairman: 

We would like to raise questions regarding conditions recommended by 
the Director of the San Francisco International Airport regarding the 
transfer of the foreign currency concession. Citicorp and Bank of 
America have agreed to terms for the assignment of the Citicorp 
foreign exchange concession to Bank of America, subject to agreement 
by the Airport Commission. 

The condition that concerns us the most is the right to do foreign 
exchange in the domestic banking offices. This is important because 
it is what keeps the domestic banking at the airport commercially 
viable. Without the combination, it would be a losing operation 
primarily cashing checks for travelers with almost no lending to 
offset costs. 

The domestic lease is separate and distinct from any other lease at 
the airport, and should not be affected by the assignment in our 
view. By the same token it would be inappropriate to reduce the space 
under the terms of the contract for the foreign exchange concession as 
well. It appears there are legal impediments to this proposed change, 
given the nature of the lease. 

Finally, we see no reason for the commission to ask that Citicorp 
remain secondarily liable under the lease. This, of course, is a 
matter for the commission, which can set policy in this regard. 

As for rates, we intend as a matter of policy to continue to provide 
the same foreign exchange rates both at the airport and at our 
downtown location. We view that as good policy, both for the bank and 
for our valued customers. 



Bank of America National Trust and Savings Association Box 37000 San Francisco, California 94137 



Honorable Morris Bernstein 
March 16, 1987 
Page 2. 



We know that we are bound to fulfill all the terms and conditions for 
the Citicorp lease and we fully expect to do so. We urge favorable 
action on the transfer by you and your fellow commissioners. Thank 
you for your consideration of our view. 

I will be at your meeting Tuesday to answer any questions. Thank you. 




M. Didier 

Vice President 

Foreign Currency Services 

MD:bjm/0760M 

cc: Honorable J. Edward Fleishell, Vice President 
Honorable Z. L. Goosby 
Honorable Athena Tsougarakis 
Honorable Don Richards Stephens 
L. A. Turpen, Director of Airports 



s 



Z1 



SAN FRANCISCO 
AIRPORTS COMMISSION 




MINUTES 



DOCUMENTS DEPT 

SAN FRANCISCO 
PUBLIC LIBRARY 



APRIL 7, 1987 



DIANNE FEINSTEIN, MAYOR 

COMMISSIONERS 

MORRIS BERNSTEIN 

President 

J. EDWARD FLEISHELL 

Vice-President 

DR. Z.L. GOOSBY 

ATHENA TSOUGARAKIS 

DON RICHARDS STEPHENS 



LOUIS A.TURPEIM 

Director of Airports 

San Francisco International Airport 
San Francisco, California 94128 



Index 

of the Minutes 

Airports Commission 

April 7, 1987 



CALENDAR 


AGENDA 




SECTION 


ITEM 


TITLE 


A. 




CALL TO ORDER: 


B. 




ROLL CALL: 


C. 




ADOPTION OF MINUTES: 
March 3, 1987 



RESOLUTION 
NUMBER 



PAGE 



F. 
G. 



ANNOUNCEMENT BY SECRETARY: 



DIRECTOR'S REPORTS: 

Report on Proposed Airport Van 
Service Agreement and Amend- 
ments to Airport Motor Coach 
Service Agreement 



ITEMS INITIATED BY COMMISSIONERS: 

PENDING LEGISLATION: 
Report on State Legislation 
Prevailing Wage Ordinance 



87-0075 



4-19 
19 

19 
19 



ITEMS RELATING TO ADMINISTRATION, 
OPERATIONS & MAINTENANCE: 

4. Resolution Awarding Lease of Shoe- 
shine Stands in the South Terminal 
Bui lding 

5. Resolution Regarding Human Rights 
Commission 

6. Declaration that 1940 Mack Fire 
Truck is Surplus and Authorizing 
Gift to St. Francis Hook and 

Ladder Society 87-0069 



4 
20 



20 



20-21 



CONSENT CALENDAR OF ROUTINE 
ADMINISTRATIVE MATTERS: 

7. Resolution Exercising Option and 
Establishing a New Rental Rate - 
Pan American World Airways, Inc., 

Plot 1-C 87-0070 21 

8. Type II Modification for Contract 
1410EF, South Terminal Phase II 87-0071 

9. Sign Approval for Delta 

10. Tenant Improvement: Delta 
Airlines (T-3237) 

11. Travel /Training for Airport 
Representatives 



CORRESPONDENCE: 

12. Art Commission Brochure 22 

Letter from Handler, Baker, 

Green & Taylor re: 

Associated Limousines 22 



ADJ0UNRMENT TO GO INTO 

CLOSED SESSION: 22 



87-0071 


21 


87-0072 


21 


87-0073 


21 


87-0074 


21 



Minutes, April 7, 1987, Page 2 



Minutes 

of the 

Airports Commission Meeting 

April 7, 1987 



CALL TO ORDER: 

The regular meeting of the Airports Commission was called to order at 
9:05 A.M. in Room 282, City Hall, San Francisco, Ca. 



B. ROLL CALL: 

Present: 



Morris Bernstein, President 

J. Edward Fleishell, Vice President 

Z. L. Goosby 

Athena Tsougarakis 

Don Richards Stephens 

Commissioner Stephens was excused from 
the meeting at 10:45 AM. 



ADOPTION OF MINUTES: 

The minutes of the regular meeting of March 3, 1987 were adopted by order 
of the Commission President. 

No. 87-0075 



ANNOUNCEMENT BY SECRETARY: 



In accordance with Section 54957.1 of 
the Brown Act, Jean Caramatti , 
Commission Secretary, announced 
unanimous adoption of resolution no. 
87-0069 directing the Director to hire 
the law firm of Dobbs, Berger, 
Molinari, Casalnuovo, Vannelli and 
Nadel to handle the appeal in the SF0 
Airporter case at the closed session 
of March 17, 1987. 



Minutes, April 7, 1987, Page 3 



DIRECTOR'S REPORTS 

1. Report on Proposed Airport Van Service Agreement and Amendments to 
Airport Motor Coach Service Agreement 

Report regarding a proposed Airport 
Van Service Agreement and amendments 
to Airport Motor Coach Service 
Agreement. 

Commissioner Tsougarakis said it was her understanding that there's 
been a request for postponement of Item No. 4. She said that as a 
rule the Commission does not like to grant postponements but if the 
Commission agreed to it the public should be told now. 

Commissioner Bernstein said that Item No. 4, the award of the 
shoeshine lease in the South Terminal, has been postponed for two 
weeks. 

Commissioner Goosby asked why it was being postponed. 

Commissioner Bernstein responded that Mr. Caplan, who represents one 
of the bidders, requested a postponement, claiming that he has not 
received certain information. 

Commissioner Goosby said that this item will be returned to the 
Commission in two weeks, and no new bids will be accepted. He said 
he did not know what Mr. Caplan hopes to accomplish but the postpone- 
ment will be granted as a courtesy. He said that the item will be 
voted on in two weeks. 

Mr. Lou Turpen, Airport Director, added that anyone in the audience 
wanting a copy of the agenda item can see the Commission Secretary 
after the meeting or call the Commission Secretary's office at the 
Airport. The item contained in this agenda will be reintroduced as 
written in two weeks. 



Mr. Turpen told the Commission, as a point of administrative clarifi- 
cation, that this is a Director's Report. Staff is presenting its 
thoughts on how the van service and on-Airport Motor Coach Service 
Agreement should be structured. The Commission will take no action at 
today's meeting other than to receive the report, the objective of 
which is to present staff's views and begin working with the industry 
and with the Commission to finalize an agreement which then can be 
put out to bid. He said that the report, which is available to 
anyone wanting a copy, simply outlines the current thinking and 
establishes a foundation for discussion concerning both an Airport 
Motor Coach Service Agreement and an Airport Van Service, a new 
concept in terms of its separation from the Motor Coach Agreement. 
Mr. Turpen said that the Commission can accept public testimony 
today. Staff will then meet with parties interested in both the 
Airport Van Service and In the Airport Motor Coach Service Agreement 
and then return to the Commission with those comments along with a 
final recommendation as to how those agreements should be 
structured. He again emphasized that the Commission would not vote 
today. This process will take a minimum of three to four months in 
the normal course of events. 

Mr. Turpen said that for some time the Airports Commission has 
contemplated bidding an Airport Motor Coach Service Agreement and, 
within that agreement, a van option, which would allow the successful 
bidder of the Motor Coach Service Agreement to utilize vans in 



Minutes, April 7, 1987, Page 4 



conduction with that agreement. He said there has been a lot of 
discussion, much of it comming from the industry, as it became more 
and more apparent that separating the van service from the large bus 
service was prudent. This report envisions splitting the former 
Motor Coach Service Agreement into two agreements: a Motor Coach 
Service Agreement for the large buses and a Van Service Agreement. 

Mr. Turpen told the Commission that recent publicity has incorrectly 
suggested that certain ground transportation operators would be 
"vanished" to other parts of the Airport. This contemplates 
addressing only the large buses and the vans; it does not contemplate 
relocating any current ground transportation operator from a location 
which they presently occupy. 

Commissioner Bernstein asked the speakers to limit their comments to 
three minutes. He asked Mr. Mike Sealey, Yellow Cab, if he wished to 
address the Commission. 

Mr. Sealey reminded the Commission that just under a year ago there 
were hearings on a proposed fee that was to be levied on the vans as 
they pass through the Airport. The original proposed fee for vans 
was $10. for each pass through the Airport. SuperShuttle objected, 
claiming that fee would bankrupt them. He told the Commission that 
as SuperShuttle was claiming poverty they were opening a large 
operation in Phoenix. He said that the fee was quietly lowered to 
thirty-five cents. 

Mr. Sealey said he was not sure why $1.00 would bankrupt SuperShuttle 
when taxicabs have been paying $1.50 every time they pass through the 
Airport for years. He underscored his concern that if the specifi- 
cations have not been written by one particular operator it would 
certainly appear to be much more for their benefit than for anyone 
else, or for the public. He quoted Mr. Ruiz from Lorrie's as saying 
that it looks as if the specifications were written so that no one 
but SuperShuttle could qualify. He reminded the Commission what a 
mad house it was at the Airport when one cab company had exclusive 
pick-up rights. 

Mr. Sealey concluded his remarks by saying that he hoped the 
Commission remembers that any wrong-doing or favoritism toward any 
one operator will look bad for the Commission and will come back to 
haunt them. 

Commissioner Bernstein asled Mr. Arthur Lemke if he wished to address 
the Commission. 

Mr. Arthur Lemke, Yellow Cab, expressed his concern for the cab 
industry and the drivers. He said that there will not be enough room 
if vans are allowed to use the inside curb along with the buses. He 
said he would like to see a gound transportation system where 
everyone pays their way. The result would be more money for the 
Airport, and, it would be a fair system for the entire Industry. He 
suggested that every ground transportation vehicle leaving the 
Airport could go through a check-out booth and pay a fee. 

Mr. Lemke said he was against having vans on the inside curb. The 
cab drivers suffered through an additional 50 cabs on the street for 
the Democratic Convention and there is talk about putting more cabs 
on the street. He said that drivers on the weekend shifts are barely 
making enough to pay their gates and gas. He said it is a very 
difficult situation for cab drivers and if the Commission allows the 
vans on the inside curb, cabs and other ground transportation 
vehicles should also be allowed there. Each vehicle could then pay 
its fair share and no one would be hurt. 



Minutes, April 7, 1987, Page 5 



Commissioner Bernstein asked Mr. Andy. DePaul of the Good Neighbors 
Airport Shuttle if he wished to address the Commission. 

Mr. DePaul said that less than six months ago the Airport Director 
said that under no circumstances would any of the van services be 
allowed downstairs. He complained that they were asked to sign a 
contract which raised their fees from $300 a year to about $8500 a 
year and all they got for it was a parking lot that they didn't 
need. He said they were promised signage at the Airport, which they 
received, but which no one understands. Their name is printed in one 
inch letters on the sign post at their pick-up point. He has lost a 
lot of money at the Airport and now a contract is being proposed 
which only one company in town can possibly fullfill. He said that a 
minumum bid of $200,000 is meaningless to him when his company last 
year grossed slightly under $200,000. 

Commissioner Goosby asked how many shuttle buses they have. 

Mr. DePaul responded that they have six vans and they have never 
caused a congestion problem at the Airport. He suggested that if the 
Commission wants the vans to pick up downstairs they should all be 
allowed to do so and should be charged a rate of 12 percent of their 
income. This would open it up to everyone and there would be no hint 
of corruption. He said that the winning bidder will be downstairs 
with booths to solicit business and signage pointing passengers in 
their direction. The other companies will be left upstairs and they 
will lose a lot of their business while the company on the lower 
level will get 90 percent of the business. He felt that allowing all 
of the companies downstairs would give the Airport the same control 
they have with the taxis. 

Commissioner Goosby asked Mr. DePaul if he could bid on this contract 
with other small businesses. 

Mr. DePaul responded that it wouldn't work as this contract will 
serve the entire City and his company is pretty much a residential 
operation, serving only the western neighborhoods. They couldn't bid 
for that reason, even if they had the required $200,000 to bid. Nor 
would he be able to come up with the money he would have to bid. 

Commissioner Stephens explained that Commissioner Goosby was 
suggesting that the van companies serving the other neighborhoods 
combine in order to bid. 

Mr. DePaul responded that he understood but explained that there are 
six services. SuperShuttle serves the entire City; Yellow Van 
Service doesn't have 25 vans, and without buying vans they aren't 
qualified; Lorries serves almost the entire City; California Mini Bus 
serves the area from Van Ness to downtown; and, Good Neighbor 
essentially serves from Divisadero and Guerrero Streets, west to the 
ocean. Even if they combined there is a large area that would not be 
served. He said there was no way to put the companies together and 
added that he would like to keep his independence. 

Commissioner Bernstein said it is not the Commission's intention to 
rule anyone out because they are too small. 

Mr. DePaul responded that it is not a matter of ruling them out 
because they are a small company, rather it is the fact that they are 
small which makes it impossible to bid with these kinds of problems. 

Mr. DePaul said that he has seen the outline, not the specifications, 
and he, as well as a number of other people, felt that it appeared as 
if they were written on 16th Street, not at the Airport. 



Minutes, April 7, 1987, Page 6 



Mr. DePaul concluded by asking that all vans be allowed the same 
access, just like the taxis. He also complained that there are no 
weather shelters for van customers. Finally, he told the Commission 
that the signage at the Airport is very poor. Instead of saying 
"Shuttle Services" it says "Prearranged Transit". He argued that 
even if passengers could find the sign, no one knows what 
"prearranged transit" means. 

Commissioner Bernstein asked Tony Ruiz of Lorries if he wished to 
address the Commission. 

Mr. Ruiz asked the Commission to allow the winning bidder to purchase 
the vans after the bid comes out, not before. He said that no one 
but SuperShuttle has 25 vans at this time. He also said that the 
first bid bond was $100,000. A lot of the small companies, himself 
included, probably would not be able to raise the $200,000 bond. He 
said that some bidders would not be able to raise the $100,000 either 
but they would have a better chance with amount. 

Mr. Ruiz said that 12 years ago he started a van service with two 
women and they changed the industry. The Commission is going to 
change the industry again. The taxicab companies will be hurt 
tremendously. There will be 735 taxi cabs in San Francisco trying to 
pick up business. SuperShuttle, at this time, is picking up people 
on a charter basis in San Francisco and transferring them from point 
to point for one price. He said he looked this over three years ago 
and found it is authorized by the PUC. 

Commissioner Stephens told Mr. Ruiz that he would not have to provide 
the 25 vans unless he received the bid. 

Mr. Ruiz responded that that was correct. 

Commissioner Bernstein asked Mr. Marv Gralnick of DeSoto Cab if he 
wished to address the Commission. 

Mr. Gralnick said he represented the San Francisco Taxi Association 
and they were very concerned with this new bid proposal and the way 
it came about. He said that there is only one van company around 
capable of submitting a bid at this time and that is Super Shuttle. 
He said that at $7.00 a trip SuperShuttle was taking business away 
from the Airporter bus and the cabs. SuperShuttle currently has an 
application in with the Public Utilities Commission for a $10.00 
fare. He told the Commission that when SuperShuttle began their 
operation in Los Angeles their fare was $6.00; now, in some areas of 
Los Angeles it is $20.00. If the rates go to $10.00 he felt there 
should be a survey to determine how many passengers use that service. 
They ran Airporter out of business in Los Angeles, as well as every 
other bus company; they even bought out a company. He told the 
Commission that SuperShuttle lost three suits in areas around Los 
Angeles under the Cartwright Act. 

Mr. Gralnick said that the average person who has a bus or a van in 
San Francisco is out of the picture, as well as the individual who 
has five or even 15 buses or vans. He said that a number of years 
ago Yellow Cab was the only company that could pick up at the 
Airport. The Commission was petitioned, as was the Board of 
Supervisors, and they agreed that it was only fair and equitable, 
and, more financially beneficial to the City to allow any cab to pick 
up at the Airport. Cabs currently pay well over $ 1 -mi 1 1 i on a year to 
the Airport while SuperShuttle pays only 350 per loop. He asked the 
Commission whose responsibility it was to count the loops. He felt 
that the entire bid was put together for SuperShuttle' s benefit. 



Minutes, April 7, 1987, Page 7 



Mr. Gralnick said that there were hearings at the Airport that 
established rules and regulations for taxi cabs. They operate 
on-demand downstairs at the outside lane, while SuperShuttle will be 
on the inside lane. 

Mr. Gralnick said that SuperShuttle is a Los Angeles-based company 
and the Airport should be catering to San Franciscans. He felt that 
a company in business and furnishing money to the Airport should be 
required to be San Francisco or Bay Area-based. He wondered why the 
Airport is dealing with Los Angeles. 

Mr. Gralnick said that although SuperShuttle is not presently allowed 
to solicit, if this bid goes through they are going to have two 
booths inside where they can sell tickets and direct passengers. He 
said that for five years cabs have been trying to tell passengers 
that a cab ride downtown is $22.00 but they are being told inside the 
terminals that the cost is $35.00. The cabs have been trying to get 
signs put up listing ground transportation prices but they have been 
unsuccessful . 

Mr. Gralnick said that SuperShuttle is operating as a cab service in 
San Francisco, picking up passengers on the street and taking them to 
other locations in San Francisco. The Commission should be trying to 
get the most money it can and the way to do that is to include every 
van operator. SuperShuttle is currently charging $7.00 but without 
competition they will jump up to $10.00 and then $15.00. He said 
that the cab industry is simply asking for a fair shake. 

Mr. Gralnick told the Commission that Lt. Gregg Winters, under the 
direction of Chief Jordan, asked him to tell the Commission that they 
are going to recommend that cabs be allowed to share a ride so that 
perhaps three people can ride a cab for $7.00 a piece. He said he 
would like the contract to be open to every van but failing that he 
urged the Commission to give the van companies more time to get 
together and submit a joint bid. 

Commissioner Tsougarakis reminded the speakers of the three minute 
rule. 

Commissioner Bernstein asked Mr. Gordon Esposto of SF0 Airporter to 
address the Commission. 

Mr. Esposto said he has been operating the bus service at the Airport 
for 20 years and strongly objected to the specifications as he felt 
they were directed toward the vans. He requested an environmental 
impact report on the effect this additional traffic would have on the 
Airport. He told the Commission that last Friday Airporter moved 
2600 people from the Airport to San Francisco, and in one hour 
provided 600 seats of which nearly 500 were filled. If the Airport 
converted to a van operation by moving Airporter buses to the outer 
roadway its patronage would be diminished tremendously. He said that 
nearly 100 vans would be needed just to take care of those 600 people 
in one hour, rather than the 25 vans being required. He also told 
the Commission that while those 100 vans are transporting passengers 
to San Francisco another 100 vans will be needed to transport the 
next 600 people. He urged that if a professional study was not done 
an ad hoc committee consisting of present operators should be set up. 

Mr. Esposto said that the Airport currently has a transportation 
system that works. There are four types of services operating at the 
Airport and objections regarding changing the present system have 
come from each one. He said that the four services currently accom- 
modate all of the patrons. He has never heard complaints regarding 
lack of service but he feared that if this happens there will be many 



Minutes, April 7, 1987, Page 8 



complaints. He suggested that an ad hoc committee could be charged 
with developing a master plan for the Airport's ground transportation. 

Commissioner Bernstein asked Mr. Blake Derby if he wished to address 
the Commission. 

Mr. Derby said that he is a driver for Yellow Cab. He asked the 
Commission to consider economic parity and the problems cab drivers 
have been facing for the last seven years. He told the Commission 
that first they were outside but later were moved into the garage. 
He recommended putting the second class service on the outside lane. 

Commissioner Bernstein asked Mr. Clarence Washington If he wished to 
address the Commission. 

Ms. Ewlng, representing her son, Clarence Washington, wanted to 
address the Commission on the International Terminal Shoeshine Lease. 

Commissioner Tsougarakis told Ms. Ewing that she was out of order; 
the Shoeshine Lease would be heard in two weeks. 

Ms. Ewlng responded that she has talked with Mr. Copelan about the 
International Terminal Shoeshine lease and would like to address the 
Commission regarding transportation at the Airport. She said that 
Yellow Cabs have refused to take her to certain areas of the City. 
She said that their is litigation pending and she asked that someone 
at the Airport get back to her on this. 

Commissioner Bernstein asked Mr. Hal Muskam if he wished to address 
the Commission. 

Mr. Muskam said that he has been in the cab industry for 11 years and 
an active driver for at least half of that time. He hoped the 
Commission had an open mind in this process. 

Commissioner Bernstein responded tnat If they didn't have open minds 
they wouldn't be here. 

Mr. Muskam apologized if he offended the Commission but said he was 
used to the power structure generally taking advantage of people and 
he hoped that would not be the case now. 

Mr. Muskam told the Commission that at this point cabs are not 
allowed to group load and split the meter. Cab drivers, who have 
been in the industry for years, are not allowed to be competitive. 
He said he shared the concerns of others that this contract was 
written on 16th Street and he felt that the Lazars were in debt to 
the Airport and he highly resented the role they were playing in this 
situation. He said that the Airport has been the gravy of the 
business to cab drivers and he has never turned down a short load at 
the Airport. He told the Commission that he makes more money running 
short runs all night then he does running back and forth to the City. 
He told the Commission that this will Inhibit their ability to earn a 
living and will force many cab drivers onto public assistance. He 
said that if his Income drops below a certain level he will apply for 
public assistance and encourage other drivers to do the same. 

Mr. Muskam said that it was his understanding that the method by 
which SuperShuttle obtained Its PUC license is currently under 
litigation. He felt that the Commission should take a look at that 
litigation and its background. 

Mr. Muskam said that the cab drivers are at a disadvantage because 
they don't pay off hotel concierges; SuperShuttle does. He said that 



Minutes, Apri 1 7, 1987, Page 9 



more than one doorman at more than one hotel has told him that if he 
did not pay the concierge $2.00 for an Airport load, that load would 
go to the next SuperShuttle van. He said that he has been informed 
by people in the hotel industry that the individuals who book Super 
Shuttle get a kickback. He told the Commission that the cab business 
is not organized enough to do that but perhaps that is what they will 
have to do in order maintain their jobs. He said he has nothing 
against inexpensive door-to-door transportation between San Francisco 
and the Airport. Passengers should be able to travel as cheaply as 
possible and if cabs were allowed to group load it would be the 
cheapest way to travel. He said that if the Airport helped the cab 
drivers to become competitive it would be a whole new ball game. 

Commissioner Goosby asked if cab group loading privileges are 
determined by the Police Commission. 

Mr. Sheldon Fein, Landside Operations, responded that as far as he 
knew there was nothing prohibiting a group of people who want to go 
to San Francisco from sharing a cab. 

Mr. Muskam asked if he was allowed to pull up at United when there 
are not enough cabs and ask people to share a cab into the City. 

Mr. Fein responded that there are signs in the taxi zone that not 
only give the rates to every city in the Bay Area but also explains 
that three can ride for the price of one. He said that this sign was 
put up several years ago after meetings were held with various taxi 
associations and groups. 

Mr. Muskam said that a week ago Sunday there were a number of people 
who had been waiting for a cab for quite some time so he group loaded 
them; he was then threatened with expulsion from the Airport. He 
also reminded the Commission that the Sunday night of Thanksgiving 
weekend the Airport was closed to taxicabs and there were only five 
cabs in the lot. He said that they hear from customers about the 
inconvenience, but cab drivers were not allowed to help rectify that 
situation because they were not allowed into the lot in order to pick 
up passengers . 

Commissioner Stephens said that Mr. Muskam asked if, during busy 
periods, cabs were allowed to approach a group of people, all of whom 
are going to generally the same area, and ask them if they would like 
to share a cab for one price. He said that the answer he heard the 
Airport give is that cabs can group load. He asked if that was true. 

Mr. Muskam responded that taxies are allowed to group load but the 
drivers cannot get out and solicit people into groups. He said that 
when the Airport is running short on taxis the starters group people 
and put them in the cabs. Otherwise every driver would be out at the 
curb trying group. He said that the sign is there and if people want 
to group themselve they can. 

Commissioner Goosby said that group loading must then be initiated by 
passengers; cab driver can't initiate it. He asked who determined 
that it had to be initiated by the passenger. 

Mr. Fein said that was determined by the Airport. 

Commissioner Goosby said that there was then no restriction by the 
Police Commission or by the State PUC about taxi drivers soliciting 
group loading. 

Mr. Fein said that according to the rules they are allowed to take 
groups of people and charge them one rate. 



Minutes, April 7, 1987, Page 10 



Mr. Muskam argued that the passengers are not aware of that. 

Commissioner Bernstein asked Mr. Bob Franklin if he wished to address 
the Commission. 

Mr. Franklin, cab driver for DeSoto Cab Company, said he has been 
with DeSoto for about six years. He told the Commission that he has 
seen SuperShuttle vans on the streets making illegal turns and he has 
seen them on the freeway passing taxicabs, traveling in excess of 65 
mph. He believed that SuperShuttle drivers do these things because 
they are working on a commission; they get 30 percent of the gross. 

Mr. Franklin said that SuperShuttle is not a professionally run 
operation and can't compare with the type of operation that Airporter 
offers. He said he does not ever recall seeing an Airporter bus 
driving in excess of 5 miles over the speed limit, however, 
SuperShuttle drivers consistently drive in a wreckless manner. 

Mr. Franklin said that the cab driving business is getting rougher 
and rougher; most drivers work ten hours a day. He said that another 
problem is the increase in the number of cabs. Cab drivers need an 
hour break during the day but at the Airport it usually turns into an 
hour and a half, sometimes two hours. It's becoming a question of 
being able to afford going to the Airport. 

Mr. Franklin said that cabs render an important service to the 
Airport because there are passengers who are not going downtown or to 
the more lucrative areas that SuperShuttle covers. He said that cab 
drivers will be impacted by this and will only be pushed so far. He 
said he has already heard rumblings of peroidic boycotts of the 
Airport. He told the Commission that it will create a problem that 
will come back to haunt them. 

Commissioner Bernstein asked Mr. Bill Lazar if he wished to address 
the Commission. 

Mr. Lazar felt that two items in the document must be addressed. The 
first is that the drivers are being required to stay in their 
vehicles and are not allowed to assist passengers. He asked that the 
rule be lifted so that the drivers can lift baggage and assist 
passengers into the vehicle. Secondly, regarding the proposed stop 
areas, he said he did not think they were as accessible as they could 
be. He felt that the walking distance from the baggage claim areas 
to the current proposed stops is still quite a distance and since 
this is a public convenience it should be located closer to the 
baggage claim areas, consistent with where the buses stop. 

Mr. Lazar said that his company will continue to work with staff. He 
said they try to follow the rules as the Airport dictates them. He 
said that staff has already gone through many long hours of pre-bid 
conferences but there may still be other things that must be 
addressed at the next pre-bid conference. 

Commissioner Bernstein asked Mr. Gregg McKegg if he wished to address 
the Commission. 

Mr. McKegg said San Francisco is known for its service but shoving 
passengers into a van would be a far cry from personal service. He 
said it has come to his attention that SuperShuttle started in other 
cities with $6 fares, then went to $10, then to $15, and now it's up 
to $20, the same as a cab ride. He said that if SuperShuttle gets an 
exclusive right to the Airport it will take about 25 percent of his 
income and that of the other drivers in this City. He felt that 
would mean that 30 percent of them will quit. Then, when the van 



Minutes, April 7, 1987, Page 11 



service gets up to the same price as a cab and the Airports 
Commission decides it wants them to return to the Airport, the cab 
drivers won't be interested. 

Mr. McKegg said that service to and from the Airport will decrease. 
Vans add an hour to their schedule because they pick up more than one 
passenger at different locations. He said that whether passengers 
are traveling for business or pleasure they don't want to waste time 
running around picking up other passengers. SuperShuttle runs a good 
operation now but once they become a monopoly there will be no 
incentive to continue that same level of service. He said that at 
that point the Airport will want cabs but there won't be any 
available. 

Mr. Franklin felt that the SuperShuttle situation is very similar to 
Japan's introduction of automobiles in this country. He explained 
that for about three years the Japanese sold their cars for less than 
it cost us to make them, until the American public was hooked. Now 
Japanese cars are the same price as American cars. The same thing is 
happening with this van proposal. The Airport is putting the cab 
drivers out of business and they won't be around when the Commission 
realizes that the shuttle service is not filling the Airport's needs. 

Commissioner Bernstein asked Mr. Robert Richardson, Luxor Cab, if he 
wished to address the Commission. 

Mr. Richardson said he was a union driver but was speaking on behalf 
of the leasee drivers at Luxor Cab Company. Later he would like to 
speak on behalf of the union drivers. He said the cab drivers in San 
Francisco are organizing, as are the drivers in Oakland and San Mateo 
County. They are trying to give service to people and there is money 
to be made if they give good service. He said that cabs are the 
cheapest form of transportation. Mr. Richardson said that a previous 
speaker had suggested that cab drivers should start paying people 
off. He did not feel that they should resort to solicitation and 
bribery; the drivers will not lower their standards to Super 
Shuttle's. He said he has been told by the hotel people that $2.00 
of the $7.00 goes back to the hotel and he, himself, has seen this 
happen. 

Mr. Richardson said that Airporter indicated today that a van service 
would create terrible traffic congestion. He felt it would be 
impossible to bring that many vehicles to the Airport and put them on 
the inside lane. He said that cabs, at one time, were on the inside 
lane and then were shoved to the outside lane. Now SuperShuttle 
wants to be on the inside lane and they want a concession booth as 
well, leaving nothing for cab drivers. He also said that. their have 
been recommendations from Airport management to cut down the size of 
the lot but he argued that it has already been cut down. 

Mr. Richardson told the Commission that there are occasions when five 
cabs are called out and sent down to United where 25 or more 
passengers are waiting for a cab. Those passengers are Insisting 
that more transportation is needed. He said the cab drivers are 
there but they can't get in. 

Mr. Richardson said that he also heard that the Airport is going to 
have odd and even cab numbers come into the Airport. He asked what 
will happen when more cabs are needed. Which cab company will be 
called? He said that the Airport isn't calling Luxor and he has 
confirmed with some of the other companies that they aren't being 
called either, and still other companies aren't being called because 
they don' t have radios . 



Minutes, April 7, 1987, Page 12 



Mr. Richardson said that even the news media believes that Super- 
Shuttle already has its foot in the door at the Airport. 

Mr. Franklin asked the Commission if it would sit down with the 
Police Commission to discuss the cab situation. He told the 
Commission that the Airport is now being perceived by cab drivers as 
the enemy. 

Mr. Franklin quoted Mr. Lazar as saying that his company wants to 
play by the rules. He complained that he was almost run over by a 
SuperShuttle van traveling in reverse gear down Grant Street all the 
way to Montgomery Street and right through the intersection light. 
He said he had to jump out of his cab and run into a hotel. Mr. 
Franklin told the Commission that at a previous meeting he testified 
that SuperShuttle travels to the Airport at speeds in excess of 75 
mph., but the Commission hasn't seen anything yet. He suggested that 
the Commission talk to cab drivers at the Airport and they will 
explain what's going on. 

Commissioner Bernstein asked Mr. Steve Leonoudakis if he wished to 
address the Commission. 

Mr. Leonoudakis said that this set of specifications will destory 
what the Airport now has in the way of ground transportation. The 
Airport might as well forget about the cab business and the limousine 
business, but he asked that the Commission not forget about the fact 
that the City urged his company to build a terminal downtown. He 
said that his company spent $1 -mi 1 1 i on and committed to a long term 
lease. Under this set of specifications passengers will be motivated 
to use vans because the bus size is being reduced to six and moved to 
the outside curb. He reminded the Commission that when four 747' s 
land at the same time and 600 people with overseas baggage must be 
moved, they are going to want a bus. However, six buses will not be 
able to serve all of those people and you can't expect those people 
to drag their luggage across a lane of traffic in order to reach the 
bus on the i sland. 

Mr. Leonoudakis said he did not want the Commission to forget its 
promise that whoever succeeds to the ground transportation service 
will have to pick up the terminal, even if its a van service. He 
said he is out of business. When the new operator has the curb lane 
and solicits inside the building, the Commission might as well write 
the cabs off because there won't be anybody left; vans will take 
business right off the curb. Historically, that location was given 
to the big bus operator because he had the ability to provide the 
largest amount of service with the proper vehicle. 

Mr. Leonoudakis cautioned that the specifications break the ground 
transportation service into two parts, Airport Motor Coach Agreement 
and Van Service. He felt that the agrument will be made that whoever 
gets the Motor Coach Agreement will have to take the terminal. He 
asked what would happen if no one bid as a large bus operator because 
the rest of the business is being given away to vans. The big bus 
operator needs $5-million worth of capital investment to have the 
right number of buses, a terminal and a 24-hour staff working under 
union contract. He said that the Airport won't be able to encourage 
anyone to come in. He again asked that the terminal not be left out 
of the specifications. 

Mr. Leonoudakis concluded his remarks by saying that for 35 years the 
taxicab operators, the bus operators and the limousine operators have 
lived in real harmony at the Airport. For the last two years the 
vans have made a minor contribution and for two years he has 
complained about vans taking their market. They have consistently 



Minutes, April 7, 1987, Page 13 



been paying the Airport over $2-million a year, vans have been paying 
nothing. He said that not only were they not pay anything, they 
broke all the rules, violated all the regulations and nothing was 
done to stop them. They were permitted to hustle the customers, work 
downstairs, put out literature, have tie-ins with airlines and do all 
the things that none of the other operators could do. If a cab 
driver solicits a customer, it's a $300 fine and he's out of 
business. He argued that this document exacerbates the whole 
problem. He thought a document would be produced that would give 
everyone the opportunity to stay in business; leave the buses and 
cabs where they are, give the limousine service their share of the 
market, move the vans upstairs where they are manageable, or put the 
vans out as a separate bid package. He asked the Commission to try 
to visualize the vans attempting to move 300 people. 

Mr. Leonoudakis said that this business depends upon traffic moving 
in both directions. . .there must be vehicles going to and from the 
Airport. SuperShuttle has decimated the market that starts in San 
Francisco and goes to the Airport. He urged the Commission not to 
allow this to go forward today without a traffic survey. 

Commissioner Goosby said that one has been done but has not yet been 
released. 

Mr. Leonoudakis again urged the Commission not to go forward with 
this and give the inside lane on the lower level to SuperShuttle, or 
any small vehicle operator. 

Mr. Leonoudakis said that a transportation system is always designed 
for the optimum load and this system does not provide for that. He 
said that a lot of people will be left behind if this document goes 
forward. 

Commissioner Goosby told Mr. Leonoudakis that this document is just 
prel iminary. 

Mr. Leonoudakis asked that these specifications not be sent out. He 
felt that, with all due respect to Mr. Turpen, it was a bad piece of 
staff work. He again urged the Commission not to approve it today. 

Commissioner Bernstein asked Mr. Andrew Fenyes, of Associated 
Limousine, if he wished to address the Commission. 

Mr. Fenyes showed the Commission a copy of a document that was 
presented to them on April 22, 1986 by Nancy Lenvin, attorney for 
SuperShuttle, which explained SuperShuttle' s recommendation for a 
ground transportation system at the Airport. He said that the 
Director's Report follows Ms. Lenvin's recommendations almost all the 
way down the line so there can be little doubt as to who will benefit 
from staff's recommendation. 

Mr. Fenyes said that in the little over a year that Associated 
Limousine has been operating at San Francisco Airport they have 
requested, on numerous occassions, a number of operational 
assistances from Airport staff in order for them to better provide 
their service to the Airport, and on most of those occassions they 
have been turned down. They recently asked Angela Gittens for a 
parking or stop-over facility in front of their desk so that their 
drivers can exchange information with their dispatchers. That 
request was denied, with the explanation that there is no available 
space to park in that area, even for the few minutes that It would 
take to exchange documentation. They were finally given a parking 
spot at the south and north ends of the terminal, requiring their 
drivers to walk long distances. He said it is interesting to him 

Minutes, April 7, 1987, Page 14 



that in this proposal there is room for vans to park downstairs in 
order to conduct their business. Mr. Fenyes said that these types of 
things have been going on since they began their operation. He hoped 
that the Commission will carefully consider who will benefit from 
this and what will happen to the existing operators at the Airport. 

Commissioner Bernstein asked Mr. Ed Burke, Sunshine Cab Company, if 
he wished to address the Commission. 

Mr. Burke told the Commission that his concern is the public interest 
and he did not feel that the public interest would be served by 
pushing vans at them. He said that taxicabs are a better ride and 
everybody knows it. When people share a cab they pay less, they have 
personalized service and business people can conduct their business 
in private. There should be equal access to customers but he felt 
that taxi drivers would suffer in this proposal. He said that cabs 
and buses are a generic form of transportation worldwide. Many 
people come to San Francisco to conduct their business and they want 
cabs. Mr. Burke said that most of the cab drivers are professional 
drivers whereas SuperShuttle advertises for artists and students and 
people who are barely 21 years old, with no experience, to apply for 
jobs as drivers. He asked the Commission to keep in mind that the 
public interest is more important than fat contracts where one or two 
people make a lot of money. 

Commissioner Tsougarakis asked that staff hold a pre-bid conference 
on the van issue because the separation of vans from the Motor Coach 
Service Agreement is a new issue. She felt that this public 
testimony should be directed in a formal environment so that those 
issues can be pulled together into a proposal. She also asked that 
the Commission receive separate specifications on a Motor Coach 
Agreement. 

Mr. Turpen said that since the van concept is a new one it would be 
appropriate for staff to sit down with the industry and discuss the 
van proposal and the merits and demerits of each criteria set forth. 
He said that the Airport Motor Coach Service Agreement has been the 
subject of numerous pre-bid conferences and public testimony and he 
suggested that staff return to the Commission with the specifications 
for the bid of the Airport Motor Coach Service Agreement, as amended. 
If the Commission agrees, staff will proceed. 

Commissioner Tsougarakis asked that staff take a look at the 
possibility of opening it up, as opposed to an exclusive. 

Mr. Turpen responded that the intent is not to offer an exclusive to 
any van operator. The intent is to have a location on the lower 
level for the successful bidder, with the remaining van operators 
continuing to operate on the upper level, as they always have. It is 
not an exclusive right to the Airport, it is a lower level access. 

Commissioner Tsougarakis said she meant even a lower level access. 

Commissioner Goosby asked what the figures would be if they operated 
on the upper level, even with the booths. 

Commissioner Bernstein interrupted Commissioner Goosby and asked Mr. 
Richardson if he wished to address the Commission. 

Mr. Richardson explained that previously he spoke on behalf of the 
Luxor Cab Company as a lessee. He said he is a union shop steward, 
Local 860. His President and Business Agent have just arrived and he 
asked that they be allowed to speak on behalf of the teamsters and 
asked that the teamsters representative be allowed to speak as well. 



Minutes, April 7, 1987, Page 15 



£ommissioner Bernstein said he would let one of them speak. 

Mr. Richardson said they wanted to address jobs in the Airporter 
industry that would be terminated. 

Commissioner Bernstein said he understood the issue and the 
Commission was willing to listen to one speaker. 

Mr. Becker, President of Teamsters Local 860, said his union 
represents Luxor Cab, DeSoto Cab and Airporter Bus. He said he 
believed that allowing the vans onto the lower level would do 
outrageous harm to their members as well as to the Airport and would 
hurt the economy of the City, through the cab industry. 

Mr. Becker said that SFO Airporter has been doing an outstanding job 
and that they plan to expand their services throughout San Francisco. 
They are currently in negotiations with Airporter and will soon reach 
an agreement. He asked that the Commission not allow vans in the bid 
and not to bid a van contract. 

Commissioner Bernstein asked Mr. Becker if he was referring to 
economic advantage or the advantage or disadvantage to the traveling 
public. He also asked Mr. Becker if he was qualified to talk about 
travel and location and what to do with taxies. He said he has been 
listening to "experts" testify all morning. 

Mr. Becker believed that allowing vans on the lower level would 
create an economic hardship on taxies as well as the members he 
represents. He said that it would also add to congestion at the 
Airport. 

Commissioner Bernstein said staff and the Commission will study this 
issue and do the best they can. If a mistake is made, it will be 
corrected. 

Commissioner Tsougarakis said it was her understanding that the 
redistribution of curb space is based on an analysis which says that 
the upper level curb space is more utilized than the lower level. 

Mr. Turpen said that was correct. 

Commissioner Tsougarakis said that if it is verified again, she would 
go along with it. 

Mr. Turpen said that if the Commission agrees, staff will proceed 
with the pre-bid conference on the van option and then return to the 
Commission with an integrated set of specifications on the Airport 
Motor Coach Service Agreement, probably within the next two to four 
weeks. 

Commissioner Bernstein asked 1f the need for any of these changes 
could be substantiated. 

Commissioner Goosby asked if the impact can be anticipated. 

Mr. Turpen responded that there are probably five major modes of 
departure from the Airport by the general public, including private 
vehicles, rent-a-cars, taxies, the Airport Motor Coach and on-demand 
vans. Presently, ten percent of the people depart from the Airport 
by taxicab. That industry has grown over the past year, even in the 
face of the significant increase in van usage. He said that 
contentions that the bus operator is losing patronage to the van 
service is not borne out by the statistics. He said that it appears 
that the van operators are taking people out of private vehicles more 



Minutes, April 7, 1987, Page 16 



than they are from any other mode of transportation. He told the 
Commission that those statistics are available. 

Mr. Turpen said that it is not the intention to impact any one 
segment of the ground transportation industry serving the Airport but 
the Airport does have an obligation to recognize what passengers 
want, to serve the passengers at the Airport, and minimize the impact 
upon any segment of the industry. He said that in the last several 
years there have been at least twelve lawsuits brought against the 
Airport by the ground transportation industry that he can think of 
during this period of "great cooperation." He said that although he 
understands the motivation for the testimony today, he also under- 
stands his obligation to present to the Commission, based on what 
staff forecasts as passenger needs, and make recommendations on that 
basis. Staff will be happy to conduct a pre-bid conference to 
discuss the van option and how it can be structured in a way that 
would be positive for passengers and still minimize the Impact to 
other ground transportation operators. 

Commissioner Bernstein asked that all of the facts, figures and 
reasons be made available to those individuals. 

Mr. Turpen said that that information would be made a part of the 
pre-bid conference. If the Commission agreed he would schedule a 
pre-bid conference on the vans and then return to the Commission with 
the results. 

Commissioner Stephens asked if after the pre-bid conference the 
Commission will have an idea as to whether or not more than one 
shuttle company is going to bid on the shuttle contract. 

Mr. Turpen responded that it probably would. 

Commissioner Bernstein insisted that no one would be eliminated 
because of size. 

Mr. Turpen said it is not the intention to require anybody to have 
the requisite number of vans upon bidding. The recommendation of 25 
vans is based upon a determination of headways which staff antici- 
pates. If those headways change, the number of vans will change. He 
said it is not staff's intent to require anyone to buy vans in order 
to bid. He said that a period of time would be allowed after the 
opening of bids to secure the necessary vans. He anticipated large 
bus companies crossing over to vans. He urged that no one react to 
this as the final document. 

Commissioner Goosby asked if, based on past history, there was any 
way to tell what impact this might have. 

Mr. Turpen told Commissioner Goosby that it is very difficult to 
forecast what impact this would have on Airporter. He said that it 
appears that Airporter's fare probably contributes more to their 
ridership than any other factor thus far. He explained that 
Airporter has not lost ridership 1n the face of a significant 
increase in van ridership; they have lost very little ridership on an 
annualized basis. He said that Airporter's ridership has dropped 
dramatically from 1969 to date, long before any van operation. 

Commissioner Goosby said that when the specifications are presented 
to the Commission, a statement should be made indicating the reasons 
for those recommendations. If the reason is financial, the shuttle 
rates can be raised to the Director's original recommendation. If 
the reason is to decrease congestion or to provide better service to 
the traveling public, that rationale should be explained so that the 

Minutes, April 7, 1987, Page 17 



public and the ground transportation industry can see how staff 
recommendations conform to the wishes of the Commission. 

Commissioner Bernstein agreed with Commissioner Goosby. He said that 
if this is just a matter of getting more money, he is not interested. 
He wants to be assured that this will help the Airport, the traveling 
public and the ground transportation operators, who are trying to 
make a living. 

Mr. Leonoudakis again asked the Commission to include the downtown 
terminal in the specifications. 

Commissioner Bernstein asked Mr. Leonoudakis if he wanted to sell the 
terminal . 

Mr. Leonoudakis said that he did. He told the Commission that he did 
not think anybody will bid. He felt he was entitled to have the 
terminal included in the specifications and that the successful 
bidder had a moral and legal obligation to take it over, and the 
sooner the better. He said he was out of this business. 

Mr. Leonoudakis also said that the comments about Airporter's 
reduction in ridership being caused by fare increases was nonsense. 
He said that the loss of over 200,000 passengers his company has 
suffered is directly attributed to the SuperShuttle action. 

Mr. Leonoudakis asked for a copy of the traffic report. 

Commissioner F 1 e i she 1 1 said he has listened to all the comments made 
today about SuperShuttle and that several years ago people were 
saying that everything was being done to please Mr. Leonoudakis. 
Now, comments are being made that everything is being done for Mr. 
Lazar and SuperShuttle. He said that the fact of the matter is that 
the Airport is trying to get the best information it can. He said 
that the public need must be addressed but that nothing will be done 
irrationally. He felt that the question of whether or not the 
terminal should be included is a legal issue that must be dealt with 
at the staff level . 

Mr. Leonoudakis said that the documents were drafted so that the 
terminal would be the responsibility of a big bus operation, but in 
the event a big bus operator does not bid, does the Airport have an 
obligation to take the terminal? He said he asked Mr. Garibaldi that 
question and was told that the Airport does not have to buy it. 

Mr. Turpen felt that matter should be discussed at the pre-bid 
conference. 

Mr. Leonoudakis said that he felt he has been fair in the way he has 
served the Airport. 

Commissioner Bernstein asked Mr. Turpen if he has started on the bids 
for the garage. 

Mr. Turpen responded that he has. 

Mr. Leonoudakis asked the Commission to make a motion to include the 
terminal . 

Mr. Turpen said that this is not a matter to be staffed up at this 
meeting. He suggested that Mr. Leonoudakis attend the pre-bid 
conference on the vans and staff would be more than happy to accept 
any input he might like to provide at that time, or Mr. Green. 



Minutes, April 7, 1987, Page 18 



Mr. Turpen said that Item No. 1 1s concluded and a notice regarding 
the pre-bld conference on the van operation will be sent to all 
Interested parties. 



F. ITEMS INITIATED BY COMMISSIONERS; 

There were no Items Initiated by Commissioners 



PENDING LEGISLATION: 

2 Report on State Legislation 

Mr. Turpen said that there are four matters before the Commission 
which will come before the state legislature. Staff has provided 
brief paragraph on each. If the Commission agrees with staff's 
comments, staff will proceed. If not, staff will take whatever 
direction the Commission would like to provide. 

Commissioner Bernstein said he saw nothing wrong with it. 



Prevailing Wage Ordinance 

Commissioner Fleishell said that Mr. Turpen sent the Commission a 
note on the Eaves Bill indicating that he would bring it up at this 
meeting. 

Mr. Turpen responded that he would address it now, If Commissioner 
Fleishell wished, but he had intended to bring it up later. 

Mr. Turpen explained that there was an item calendared on the 
Prevailing Wage Ordinance before the Government Operations Committee. 
He said that it appears that there is a proposal to amend the 
Prevailing Wage Ordinance to read that any collective barganing 
agreement should be determined to be the prevailing wage. He said 
that language is slightly different than the November amendment, 
which provided that all collective barganing agreements be subject to 
the Prevailing Wage Ordinance. He said that the matter was put over 
to the call of the chair and staff will continue to monitor it. 

Mr. Turpen said that Supervisor Walker's amendment to the Prevailing 
Wage Ordinance has been tabled and staf f will continue to monitor 
that as well. There is a second amendment to the Prevailing Wage 
Ordinance that seems to have surfaced. The first one establishes as 
the Prevailing Wage anyone with a collective barganing agreement. 
The second one, by Supervisor Walker, requires that the Prevailing 
Wage be established before the bid even went out, which would cause 
the Airport significant problems in its bidding process. 

Commissioner Goosby asked if they were both on hold the Committee. 

Mr. Turpen responded that they were and staff will continue to 
monitor them. 



Minutes, April 7, 1987, Page 19 



ITEMS RELATING TO ADMINISTRATION, OPERATIONS & MAINTENANCE: 

Item No. 4 was put over. 

4. Resolution Awarding Lease of Shoeshine Stands in the South Terminal 
Bui lding 

Resolution awarding the Lease of 
Shoeshine Stands in the South Terminal 
Building to Shoeshine Unlimited. 



The following items were unanimously adopted. 

5. Resolution Regarding Human Rights Commission 

Reaffirming resolution adopted at 
March 17, 1987 Airports Commisison 
meeting. 

Mr. Turpen said that the Commission had requested this resolution. 
Staff listened to the tapes of the meeting and hopefully drafted the 
resolution consistent with the Commission's comments. 

Commissioner Goosby asked if staff has had any preliminary 
discussions on this yet. 

Mr. Turpen responded that he has had two discussions with Mr. Mickens 
and hoped to come to a resolution within 30 days. Staff is presently 
working on the Boarding Area 'E' language, which would require that 
bidders comply with the thrust of this agreement in terms of their 
minority and Human Rights approval .. .either prior approval or 
approval within 30 days of the bid opening. 

Commissioner Goosby said he understood that the wording would be 
applicable to all future joint venture bids, not just Boarding Area 
'E'. 

Mr. Turpen said that was correct. This happens to be the first 
attempt at trying to put this amended language into effect. 

Commissioner Fleishell said that Paragraph B, Page 2 refers to an 
amendment. The language presently reads that "...no amendment can be 
made to an approved joint venture partnership agreement wi-thout the 
written approval of the Airports Commission and Human Rights 
Commission." He said that when he was actively practicing law this 
language would have invited an easy violation. He suggested taking 
an option to purchase the man's interest for $1.00 and give him 
$10,000, then walk away. The agreement hasn't been amended but you 
have total control of the operation. He said that there are a number 
of ways it can be done. He asked Mr. Garibaldi to take a look at it 
and draft it so that it will more closely achieve continuing control. 

Mr. Turpen said that staff will bring it back before the Commission. 



The following item was unanimously adopted. 

6. Declaration that 1940 Mack Fire Truck is Surplus and Authorizing Gift 
to St. Francis Hook and Ladder Society 



Minutes, April 7, 1987, Page 20 



No. 87-0069 Resolution declaring that certain 1940 

Mack Fire Truck is surplus to the 
needs of the Airport and authorizing 
outright gift of this Fire Truck to 
the St. Francis Hook and Ladder 
Society for placement in the San 
Francisco Fire Department Museum, 
subject to the approval of the Board 
of Supervisors. 



CONSENT CALENDAR OF ROUTINE ADMINISTRATIVE MATTERS: 

The following items were unanimously adopted. 

7. Resolution Exercising Option and Establishing a New Rental Rate - Pan 
American World Airways, Inc., Plot 1-C 

No. 87-0070 Resolution exercising the first option 

for Lease of Plot 1-C, Pan American 
World Airways, Inc., and establishing 
a new ground rental rate. 



Type II Modification for Contract 1410EF, South Terminal Phase II 

No. 87-0071 Contract modification to provide 

additional work for unforeseen 
conditions, deficiencies and new 
requirements in the plans and 
specifications. $39,586.00 



Sign Approval for Delta 

No. 87-0072 Approving signage for Delta Cargo 

building and hanger (formerly Western 
Airl ines) . 



10. Tenant Improvement: 

Delta Airlines (T-3237) 

No. 87-0073 Leasehold improvements in South 

Terminal Complex - $267,342. No cost 
to the Airport. 



11. Travel /Training for Airport Representatives 
No. 87-0074 



Minutes, April 7, 1987, Page 21 



J. CORRESPONDENCE: 

12. Art Commission Brochure 

Mr. Turpen said that he transmitted a note to the Commission, with a 
copy of a letter from Claire Issacs, concerning the Arts Commission 
brochure. He said his note recommended that the Airport participate 
but because of the changing nature of our exhibition program, instead 
of being included in their brochure we simply provide an Insert on a 
quarterly basis for inclusion in their brochure, along with permanent 
appropriate language referring to this insert. He said that 
Commissioner Tsougarakis has been working with the joint committee on 
this and asked if she had any additional comments. 

Commissioner Tsougarakis said that recognizing the temporary nature 
of our exhibits, she felt the public would be confused if we tried to 
have two separate brochures, independent of each other, and that is 
why she made the proposal . 

Mr. Turpen explained that historically the Arts Commission said that 
they wanted to include the Airport Exhibition Program in their 
brochure. Unfortunately, their exhibitions are permanent while our 
exhibitions are temporary. That is why it was suggested that a 
permanent reference be made in the brochure indicating that there is 
an insert listing the current Airport exhibitions. He explained that 
these quarterly updates will save the Arts Commission from re-doing 
their brochure each quarter. 



Commissioner Fleishell, recalling comments made on transportation, 
said that yesterday he received a letter from Handler, Baker, Green I 
Taylor, who were writing on behalf of Associated Limousines. He 
quoted one particular paragraph which read: "...you should know that 
we have previously filed a claim against the City for and on behalf 
of our client for prior breaches of this same lease agreement." He 
said that he was not aware of this. His last conversation was that 
we had to be most careful in dealing with this because we might have 
some difficulty down the line. He said that it appears that the 
difficulty is upon us. 

Mr. Garibaldi said that they filed a claim on the same grounds that 
Airporter filed its claim, i.e., that the Airport is not enforcing 
its rules and regulations. 



ADJOURNMENT TO GO INTO CLOSED SESSION: 

There being no further calendared business before the Commission the 
meeting adjourned at 10:50 AM to go into closed session. 



6 fi 4< 

Jean Caramatti 
Commission Secretary 



Minutes, April 7, 1987, Page 22 



SAN FRANCISCO 
AIRPORTS COMMISSION 




DOCUMENTS DEPT. 

J UN 2 2 1987 

SAN FRANCISCO 

PI IRI IT. I IRRARV 



MINUTES 



MAY 19, 1987 



DIANNE FEINSTEIN, MAYOR 

COMMISSIONERS 

MORRIS BERNSTEIN 

President 

J. EOWARD FLEISHELL 

Vice-President 

DR. Z.L. GOOSBY 

ATHENA TSOUGARAKIS 

DON RICHARDS STEPHENS 

LOUIS A.TURPEIM 

Director of Airports 



San Francisco International Airport 
San Francisco, California 94128 



Index 

of the Minutes 
Airports Commission 

May 19, 1987 



CALENDAR 


AGENDA 




SECTION 


ITEM 


TITLE 


A. 




CALL TO ORDER 


B. 




ROLL CALL: 



RESOLUTION 

NUMBER PAGE 



3 
ANNOUNCEMENT BY SECRETARY: 3 



D. SPECIAL ITEM: 



Report on Marin Airporter, 
Airport Ground Transporta- 
tion Association Operator 
of the Year 3-4 



E. DIRECTOR'S REPORTS: 

2. Report on Garage 4 

3. Policy on Noise Mitigation 

Approach 87-0091 4-7 

F. ITEMS INITIATED BY COMMISSIONERS: 

Ground Transporation Consultant 7 

G. PENDING LEGISLATION: 

4. Report on State Legislation 87-0092 7-8 

H. POLICY: 

5. Policy for Approval of Rental 
Credits and Construction 
Reimbursements 

6. Settlement of Claims of $5,000 
or less 

7. Equipment Substitutions in the 
Budget 



87-0092 


9 


87-0094 


9 


87-0095 


9 



ITEMS RELATING TO ADMINISTRATION, 
OPERATIONS & MAINTENANCE: 

8. Draft Noise Abatement Regulation - 
Extension of Airports Commission 

Resolution 78-0131 9-10 

9. Request for Controller to Perform 
Appraisal Audit of Tenant's 

Properties 87-0096 10 

10. SF0 Shuttle Bus Service Agreement 

No. 68252 - Modification No. 4 87-0097 10-11 

11. Resolution Approving Design 
Review and Refurbishment of Duty 

Free Shoppers, N.V. Facility 87-0098 11 

12. Resolution Amending Leases for 

Host International and United 87-0099 
Airlines, and Approval of 87-0100 
Schematic Design 87-0101 12 

13. Resolution Approving Modification 
No. 23 to Contract 1410ABCD, 
South Terminal Renovation, 

Phase I 87-0103 12 

14. Termination of Aeroplex North 
Terminal Newsstand Lease and 
Approval of Month-to-Month 
Permit for Modified Continu- 
ation of Operations 87-0104 12-13 

15. Resolution Approving Change 
Order No. 3 to Contract No. 3 

to Contract 101 3R - Computerized 

Parking Control System 87-0102 13 

16. Airport Improvement Program 

(A. I. P. No. 8) 87-0105 13 



CONSENT CALENDAR OF ROUTINE 
ADMINISTRATIVE MATTERS: 

17. Declaration of Emergency: 
Repair Broken Water Main - 
Airfield Between South and 
International Terminals - 

Not-to-Exceed $55,000 87-0106 13 

18. Resolution Approving Design 
Review of Foreign Exchange Sign- 
age for Bank of America 87-0107 13-14 

19. Travel/Training for Airport 

Representative 87-0108 14 



CORRESPONDENCE: 14 



ADJOURNMENT TO GO INTO CLOSED 

SESSION: 14 

Minutes, May 19, 1987, Page 2 



Minutes 

of the 

Airports Commission Meeting 

May 19, 1987 



CALL TO ORDER: 

The regular meeting of the Airports Commission was called to order at 
9:04 A.M. in Room 282, City Hall, San Francisco, Ca. 



B. ROLL CALL: 

Present: 

Absent: 



Morris Bernstein, President 
Z. L. Goosby 
Athena Tsougarakis 

J. Edward Fleishell, Vice President 
Don Richards Stephens 



ANNOUNCEMENT BY SECRETARY: 



In accordance with Section 54957.1 of 
the Brown Act, Jean Caramatti , 
Commission Secretary, announced the 
unanimous adoption of resolution no. 
87-0090 regarding the settlement of a 
litigated claim at the closed session 
of April 21, 1987. 



SPECIAL ITEM: 

D. Report on Marin Airporter, Airport Ground Transportation Association 
Operator of the Year 

Marin Airporter has been named 
Operator of the Year by the Airport 
Ground Transportation Association. 
This report advises the Commission of 
this award to one of the bus services 
serving San Francisco International 
Airport. 

Mr. Lou Turpen, Airport Director, told the Commission that Marin 
Airporter was named Outstanding Transit Operator of the Year by the 
Airport Ground Transportation Association, an national organization 
of operators who provide ground transportation services to airports. 
He said he was proud to have a company serving SFIA receive the award 
for 1986 after a nation-wide competition. 



Minutes, May 19, 1987, Page 3 



Mr. Turpen told the Commission that Marin Airporter is headed by 
Grace Hughes, President, who has done an excellent job since taking 
over the family business in 1984. In the Spring of 1985 she built a 
fully enclosed terminal in Larkspur, with parking for 200 cars, at a 
cost of about $300,000. She initiated 1/2-hour service between Marin 
and the Airport in 1986, and, has seen the customer base increase 
from about 470 customers a day in 1984 to its current 900 a day, or 
about 25 percent of the originating Marin market. He said that she 
is tremendously innovative in her role as President of Marin 
Airporter. Ms. Hughes is currently working with the airlines to 
introduce through bag check-in on domestic flights, which will allow 
passengers to check their bags at the bus terminal and not be 
bothered with luggage for the remainder of the journey. She is also 
involved in a number of community issues and is very active in the 
transit industry. He said he wanted to bring to the Commission's 
attention the fact that we have a very progressive and aggressive 
member of the Airport ground transportation community who has been 
recognized for her efforts. 

Mr. Turpen introduced Ms. Hughes. 

Commissioner Tsougarakis asked that the record show that the 
Commission applauds the Marin Airporter organization for the fine 
work they have done. 

Commissioner Goosby asked that a suitable plaque be given to Ms. 
Hughes. 



DIRECTOR'S REPORTS: 

2. Report on Garage 

Report on rebidding an agreement for 
garage operations. 

Mr. Turpen said that this report is in response to a question the 
Commission had on some of the alternatives available in managing the 
central parking garage. 

Commissioner Bernstein asked Mr. Riddle if he wished to address the 
Commission. 

Mr. Riddle decl ined. 



Item No. 3 was unanimously adopted as amended. 

3. Policy on Noise Mitigation Approach 

The Board of Supervisors' Public Works 
Committee is conducting the third In a 
series of hearings on aircraft noise 
within the geographical limits of San 
Francisco. Chair Supervisor Maher has 
asked staff to present a series of 
mitigation options . 

Mr. Turpen said that the matter before the Commission outlines a 
short, intermediate and long term program for continuing the 

Minutes, May 19, 1987, Page 4 



Airport's noise mitigation efforts. He said that all of the 
Airport's noise mitigation efforts have been folded in with a 
direction toward mitigating the recently surfaced problems of over- 
flights over San Francisco. He told the Commission that the Public 
Works Committee of the Board of Supervisors has requested that he 
appear before them on Thursday. They have asked him to present a 
game plan for noise mitigation. Staff has taken a look at the 
program already in place, consolidated it and developed an outline 
for the Commission's consideration and endorsement. He said he would 
like to tell the Committee that the Commission has seen the program 
and determined that it is consistent with the Commission's overall 
noise mitigation efforts. 

Mr. Turpen said that the focal point of the effort is contained in 
Agenda Item 8, the Draft Noise Abatement Regulation. The resolution 
affirms that the matters laid out in the report are consistent with 
the Commission's overall noise mitigation plan. It also includes the 
new noise abatement regulation. 

Commission Bernstein asked if the current noise regulation was 
working. 

Mr. Turpen responded that it is. 

Commissioner Bernstein asked what all the fuss is about. 

Commissioner Goosby asked if the letter has already been sent to 
Supervisor Maher. 

Mr. Turpen responded that it was sent at Supervisor Maher 's request. 

Commissioner Goosby said that the Airport has been involved in a most 
effective noise abatement program and is not doing this because of 
Supervisor Gonzalez or because the press has expressed an interest. 
He did not want it to appear that the Airport or the Commission has 
been derelict in their responsibilities to address problems some 
communities feel exist in the southern part of the City. He said 
that a program has been projected for the next several years and this 
is just the second stage. He did not want the Committee to think 
that the Commission is unaware of it. 

Commissioner Tsougarakis said she agreed with both Commissioners with 
the exception of the intermediate term program to establish 
monitoring in San Francisco. She did not believe this to be a course 
the Airport had planned on taking. She said she would like to see a 
proposal come before the Commission to move ahead with it regardless 
of what comes out of the Board of Supervisors. 

Mr. Turpen said that the only wrinkle in this program is the 
inclusion of noise monitoring. He said that noise monitoring is a 
continuing program. The basis of noise mitigation in the United 
States has been the government's requirement that aircraft become 
progressively quieter. That requirement went into place in January 
1985 when noisier aircraft were no longer permitted at SFO. Having 
prohibited the Q707 from operating in San Francisco, the Commission 
is well aware that it is one of the noisier aircraft. He said that 
airplanes are becoming quieter by virtue of new noise standards at 
the Federal level. At the local level, the Airport tries to ensure 
that people on-Airport don't contribute noise to the environment. 
Staff also works with the airlines and the FAA to ensure that pilots 
operating aircraft at SFO are kept up to date with noise mitigation 
flight procedures so that departing aircraft use the most effective 
noise mitigation method, consistent with safety. 



Minutes, May 19, 1987, Page 5 



Mr. Turpen said that staff tries to evaluate the environment on a 
continuing basis through our monitoring system to determine if 
residents are being intruded upon by aircraft noise and exactly which 
aircraft was responsible. Each event is then investigated. In April 
1981 the Commission established the Airport Community Roundtable 
which was designed to be the focal point for all noise mitigation 
efforts. 

Commissioner Goosby asked if all of this information could be made a 
part of the resolution and if the Public Works Committee has been 
given this history. 

Mr. Turpen responded that it has been given to the Committee in bits 
and pieces. He said he believed that in his prior appearance before 
the Committee there was a general misunderstanding of the efforts and 
the amount of money the Airport has spent on efforts to reduce noise. 
He reminded the Commission that since 1981 over $5-mi 11 ion has been 
spent toward that end. 

Commissioner Bernstein asked if anything was accomplished. 

Mr. Turpen responded that in 1981 15,434 homes were impacted by noise 
according to the State. Quieter airplanes and a lot of management 
effort have brought that number to about 4,700. He said that San 
Francisco doesn't fall within the guidelines established by State 
law. He said that we are talking about single events and many of the 
reports are for aircraft sightings rather than aircraft noise 
intrusion. 

Commissioner Goosby asked if SFO wasn't one of the first airports to 
work with the Federal government to insulate homes. 

Mr. Turpen responded that SFO was the first. 

Commissioner Goosby said he would like to see some of that informa- 
tion included in the resolution. He felt that the more we can 
educate the Committee and the public the better off we will be. 

Commissioner Bernstein asked what Mr. Turpen meant when he said he 
reduced the number of impacted homes. 

Mr. Turpen responded that according to State law a residence is 
determined to be noise impacted if the cumulative amount of noise 
impacting the home in any year equates to 65 decibles. He said it 
used to be 76 decibles and has gradually moved to 65. If there is 
any residential dwelling within a 65 decible noise contour, that home 
is determined to be noise impacted. California airports have an 
objective of having no homes in the noise impact area. According to 
State law those homes must be counted on a quarterly basis and 
reported to the County and the State. We are obligated, under the 
variance, to do our best to reduce the number of impacted homes to 
the greatest extent possible. He said that it is important for the 
Commission to note that the City and County of San Francisco Board of 
Supervisors, the San Mateo Board of Supervisors and the technical 
portion of the industry (airlines, Airport, FAA) got together in 1977 
and 1980 and worked on the Joint Powers Study. Two members of the 
Commission participated in that as well as members of the Board of 
Supervisors of both counties. As a result of that study the final 
report states that because of San Francisco International Airport's 
location and because of the number of homes which have been built 
around the Airport, the best mitigation that could be attained would 
be 7,500 homes; we are down to 4,600. 



Minutes. May 19, 1987, Page 6 



Mr. Turpen assured the Commission that everything is being done to 
try to mitigate noise. The airlines are cooperating and many have 
agreed not to fly aircraft during the nighttime hours, recognizing 
that those hours are particularly sensitive. 



ITEMS INITIATED BY COMMISSIONERS: 

Commissioner Bernstein said he met with the Chief of Police, and members 
of the Police Department and the Police Commission regarding some of the 
problems at the Airport. He said that they gave him names of experts In 
the field of traffic congestion. He asked the Commission to grant 
permission to interview and hire one of these consultants to solve the 
problem that exists at the Airport. 

Commissioner Tsougarakis she was not willing to vote to hire someone at 
this time but was willing to go along with interviewing them. 

Commissioner Goosby said that staff has done a tremendous amount of work 
in developing the background for the recommendations that have been made. 
If the majority of the Commission would like to have a consultant look at 
what staff has developed and charge the Airport $5,000 to tell us that the 
system is fine, he would go along with it. But to throw staff's efforts 
out the window and hire a $20,000 or $30,000 transportation consultant who 
doesn't work for an airport and doesn't have the day-to-day experience our 
transportation people have is ridiculous. He said he would agree to 
interview consultants for the purpose of evaluating staff's proposal. 

Commissioner Bernstein asked that this item be put over until a full 
Commission is present. He said he did not want to start setting prices at 
this point. 

Mr. Turpen said the item will be calendared for the next meeting if the 
entire Commission is present. 



PENDING LEGISLATION: 

The following item was unanimously adopted. 

4. Report on State Legislation 

No. 87-0092 Commission consideration of 

legislation pending before the State 
Legislature. 

Mr. Turpen explained that there are 15 pieces of legislation pending 
before the State Legislature dealing with underground tanks. The 
only issue the Commission needs to focus on is AB1 414, which will 
give San Francisco International Airport jurisdiction over Its under- 
ground tank program. Staff is presently attempting to work with San 
Mateo County in developing a series of equitable protocols which 
would allow San Francisco International to continue Its long estab- 
lished practice of managing the Airport and working with those 
persons under contract with the Airport. In the event that effort 
fails he felt it Important that the Commission restate the Importance 

Minutes, May 19, 1987, Page 7 



of the Airport retaining jurisdiction over its own property, tenants 
and matters that occur within the Airport boundaries. The resolution 
before the Commission supports AB 1414. 

Commissioner Goosby asked if the Commission hasn't already endorsed 
that legislation. 

Mr. Turpen responded that the Commission has agreed to pursue it but 
he does not believe that the Commission ever endorsed it. He felt 
the Commission's endorsement was important as the legislation is 
currently on hold, with a promise from the Speaker to move forward 
with it, if necessary. 

Commissioner Goosby said he was under the impression that it was a 
dead issue. 

Mr. Turpen responded that that is not true. 

Commissioner Tsougarakis understood that the Speaker received 
incorrect information from San Mateo County that an agreement was 
reached. 

Mr. Dennis Bouey, Deputy Director of Facilities Operations and 
Maintenance, responded that a Supervisor from San Mateo contacted 
Willie Brown by phone and assured him that there was a signed agree- 
ment between the Airport and San Mateo County and that she would 
forward documentation. When she forwarded that documentation to the 
Speaker she did not provide him with a signed agreement because one 
does not exist. Further, she furnished him with a set of protocols 
which the Airport had formally rejected. Jackie Speier has agreed, 
at the Speaker's request, to act as a middle person between the 
Airport and San Mateo in one last attempt to reach an agreement, 
something the Airport would very much like to do. He said that he 
and Mr. Turpen have already met with Supervisor Speier. In the 
meantime staff will be briefing key members of the legislature in the 
event this bill comes off hold. 

Commissioner Bernstein asked what the objection was in San Mateo 
taking it over. 

Mr. Turpen responded that it would be the same objection Commissioner 
Bernstein would have if someone walked into his business and told him 
he had no further involvement in his own property, his own business 
and his own tenants. He said it's not good business and it doesn't 
make sense. 

Commissioner Bernstein said he understood. 

Mr. Turpen said that the Airport does not mind sharing and working 
through their system. He said there was a jurisdictional problem 
between the San Mateo Sheriff's Office and the Airport Police for 
many years. It took a long time and a lot of hard work on both sides 
to get that resolved. We now work through the Sheriff's system and 
have an excellent law enforcement effort on the Peninsula. We 
believe we can to do the same thing here. Up to this point, any 
suggestions made by the Airport which would give the Airport 
authority over this program, working through the county, have been 
rejected. The county has responded that they are in charge and the 
Airport has no involvement. He said you can't have a piece of 
property consisting of 2200 acres with a daily population of 250,000 
people, 250-300 businesses and 1,400 airplanes landing and taking off 
every day and manage it with five or six cooks in the kitchen. 



Minutes, May 19, 1987, Page 8 



H. POLICY: 



Items 5 and 6 were called together. Item 5 was unanimously adopted and 
Item 6 was unanimously adopted as amended. 

5. Policy for Approval of Rental Credits and Construction Reimbursements 

No. 87-0093 Resolution (1) requiring Commission 

approval for rental credits and 
construction reimbursements in excess 
of $5,000, and, (2) authorizing the 
Director to issue rental credits and 
construction reimbursements of $5,000 
or less. 



6. Settlement of Claims of $5,000 of Less 

No. 87-0094 Resolution authorizing the settlement 

of claims of $5,000 or less without 
prior Commission approval. 

Commissioner Goosby expressed some concerns in eliminating the 
Commission in this procedure. 

Mr. Turpen said that the Commission can be given quarterly updates. 



Item 7 was unanimously adopted. 

7. Equipment Substitutions in the Budget 

No. 87-0095 Resolution authorizing staff to make 

equipment substitutions within the 
limit of the Airport's approved Budget 



I. ITEMS RELATING TO ADMINISTRATION, OPERATIONS & MAINTENANCE: 

No vote was required for Item No. 8 

8. Draft Noise Abatement Regulation - Extension of Airports Commission 
Resolution 78-0131 

Draft Noise Abatement Regulation which 
supercedes Resolution 78-0131, the 
current Noise Abatement Regulation. 
The Regulation continues the intent of 
Resolution 78-0131 to provide for a 
continued reduction of Community Noise 
Equivalent Levels (CNELs) at San 
Francisco International Airport. 

Mr. Turpen told the Commission that this Item simply opens for public 
comment the Commission's proposed noise regulation, which would 
supercede its current regulation. Copies of this regulation will be 

Minutes, May 19, 1987, Page 9 



sent to the airlines, the FAA, the Air Transport Association, and 
members of the Roundtable so that they can offer input to the 
Commission. There will be a 60-day comment period which will start 
June 1 and run to August 1, 1987. Those comments will be shared with 
the Commission. Staff will then prepare an amended regulation based 
on the input received. He said that this regulation will continue to 
reduce noise from the Airport by requiring progressive replacement of 
noisier aircraft with quieter aircraft. This regulation is 
consistent with the regulation adopted in 1978. 

Mr. Turpen again told the Commission that no vote was required and 
that on June 1 a period of public comment will be open. 



The following items were unanimously adopted. 

Request for Controller to Perform Appraisal Audit of Tenant's 
Properties 

No. 87-0096 Resolution requesting the Controller's 

Office to prepare an audit opinion 
regarding costs related to the value 
of the SFO Airporter downtown terminal. 

Commissioner Tsougarakis asked if the Controller has been approached 
on this. 

Ms. Gittens responded that the Controller has been approached and Is 
looking at it. She said he has not agreed to do it as he is 
concerned about having the necessary staff and expertise. The 
Controller will have to shift around other Airport audits that were 
scheduled in order to get this done. 

Commissioner Goosby said that the Controller should have been asked 
to do this in the first place. 

Mr. Turpen said that in 1985 the Airport went through a significant 
number of hours of public hearings on the Airport Motor Coach Service 
Agreement, the downtown terminal being a major part of it. At that 
time it was determined by the Commission that the downtown terminal 
would be included if Mr. Leonoudakis met a couple of requirements, 
one being that he provide copies of his tax returns. Based on 
receipt of that information an amortization schedule was established 
and included as part of the bid package. There has been some 
suggestion that that amortization schedule is not as accurate as it 
could be and this would be an opportunity for the Commission to 
verify that information. 



10. SFO Shuttle Bus Service Agreement No. 68252 
Modification No. 4 

No. 87-0097 Resolution approving SFO Shuttle Bus 

Service hourly rate adjustment, 
reflecting periodic cost increases 
during calendar years 1985 and 1986 
and a new Union Agreement effective 
January 1, 1987. Includes balancing 
payments for calendar years 1985 and 
1986, and retroactive 1987 payment for 
the period January 1, 1987 through 
March 31 , 1987. 



Minutes, May 19, 1987, Page 10 



Mr. Turpen told the Commission that this is modification no. 4. As a 
result of specific language in the contract the hourly rate has been 
modified on three other occasions. He explained that this is like a 
cost of 1 iving increase. 

Commissioner Goosby asked why these costs are passed on to the 
Airport. The operator has no incentive to hold the line on wages. 
People who bid on concessions must run their operations efficiently 
in order to make a profit yet this operator is guaranteed a profit by 
passing on their expenses to the Airport. 

Mr. Sheldon Fein, Landside Operations, explained that this contract 
was bid in 1983 and the various bus companies put in a base bid which 
included their insurance, labor costs, fuel, and cost of purchasing 
equipment. All that equipment and service was bid on. The operator 
can then make adjustments from above the bid price based on the 
change of cost in fuel . 

Commissioner Goosby asked if the bidders knew that option existed 
when they bid. 

Mr. Fein said that was correct. The operator is allowed a 
differential for the cost of fuel over a period of time and for the 
cost of wages and fringe benefits. According to the contract, the 
wages and fringe benefits of the companies had to be tied in with the 
union agreements the five on-Airport rental car companies have with 
their bus operation. It was determined that the size of the bus and 
the type of work the drivers do for the shuttle bus is similar to 
that of the rental car buses that circulate the Airport. Staff has 
reviewed the different union contracts and the fringe benefits and 
the costs come out to be the average of what Avis, Hertz, National, 
Dollar and the on-Airport companies provide to their drivers. It 
isn't that the company can permit any type of rate increase, it's 
only the differential in the same ratio as the others that have been 
allowed. He said that there is an adjustment for insurance as well, 
explaining that insurance has gone up dramatically in the last couple 
of years. The company had to demonstrate to the Airport that these 
were the best insurance rates they could get. He said that staff 
reviews them and has asked the City's audit office to do an audit. 
He said that the profit margin was fixed so even though the costs go 
up the company does not get any pass through on any of the services. 
He said that in 1981 the same shuttle operation cost the Airport 67tf 
per passenger; the current cost to the Airport is 57£ per passenger. 
He told the Commission that this contract provided the Airport with 
larger equipment and reduced the cost per passenger by about 20-25 
percent over the last five years. 



1. Resolution Approving Design Review and Refurbishment of Duty Free 
Shoppers, N.V. Facility 

No. 87-0098 Resolution approving the Design Review 

and authorizing the International 
Terminal Principal Concessionaire, 
Duty Free Shoppers, to refurbish one 
of the premises as partial satisfac- 
tion of the mid-term refurbishment 
requirement. 



Minutes, May 19, 1987, Page 11 



12. Resolutions Amending Leases for Host International and United 
Airlines, an Approval of Schematic Design 



No. 87-0099 
No. 87-0100 
No. 87-0101 



Resolution amending leases for Host 
International and United Airlines for 
the development of the Royal Pacific 
Lounge, and approving the schematic 
design of said facility. 



13. Resolution Approving Modification No. 23 to Contract 1410ABCD, South 
Terminal Renovation, Phase I 



No. 87-0103 



Final price adjustment for aircraft 
apron work including final quantities 
of asphalt removal, excavation, and 
paving. Adjustment also includes 
mobilization of equipment as provided 
in contract. Total Cost: $155,000 



14. Termination of Aeroplex North Terminal Newsstand Lease and Approval 
of Month-to-Month Permit for Modified Continuation of Operations 

No. 87-0104 Resolution authorizing the termination 

of the Aeroplex North Terminal 
Newsstand Lease and approving a month- 
to-month permit for a modified 
continuation of operations. 

Ms. Gittens explained that in August, 1986 the Commission approved a 
month-to-month hold-over of two leases, Aeroplex and El son's, so that 
the Airport could bid out Boarding Area 'E' as one package and delay 
construction of the boarding area lease spaces involved until after 
the holidays. She said that staff did not want the leases to be up 
in September and October and then have the spaces under construction 
during the holiday period, so they were extended through January 31, 
1987. The bids for Boarding Area 'E' were opened December 5, 1986 so 
had all gone relatively smoothly we would have been ready for a new 
operator to start construction after the holidays and the spaces 
would be open now. She said that none of that happened and the bids 
went out in the mail yesterday. 

Commissioner Goosby asked if the bids had gone out with the approved 
HRC stipulations. He said that HRC was supposed to develop some 
quidel ines. 

Ms. Gittens responded that they didn't. She said that she met with 

the HRC yesterday and they claimed that they have come up with a 

joint venture example. She said she has not seen it but the HRC City 

Attorney is reviewing it and she should have it in a couple of days. 

Ms. Gittens said she will send it out when she receives it but she 
did not want to hold up the bids any longer waiting for HRC. 

Ms. Gittens said that the other issue is that was to be a requirement 
that bid preference determinations be provided within 30-days of the 
bid opening. She said HRC was uncomfortable with making an actual 
requirement of the bid process but they have committed to the Airport 
that they will get the determinations done within 30-days. 

Ms. Gittens, returning to the issue, said that the Airport felt 



Minutes, May 19, 1987, Page 12 



comfortable about keeping the hold-over on the same terms and 
conditions at the time because the tenant had what appeared to be a 
reasonably secure date of the end of January. 



15. Resolution Approving Change Order No. 3 to Contract 1013R - 
Computerized Parking Control System 

No. 87-0102 1. Integrate Garage Level 5 exits (3 

each) into the installed CPCS; 

2. Install a CCTV Security System at 
each exit booth of Lot 'D' and the 
garage; 

3. Provide and install two (2) 
additional high speed printers with 
tables; 

4. Provide and install one (1) 
additional CRT and keyboard; 

5. Provide and install Entry and exit 
test bed equipment; 

6. Program and provide two (2) 
additional statistical reports. 

Mr. Turpen said that utilization of the garage is increasing so 
garage revenues are increasing. Approximately 5-million vehicles 
used the garage in the last year, which reduced the number of private 
vehicles cirling the roadway. He said that it is important to 
accommodate our customers and not discourage patronage of the garage 
by making it a difficult alternative. He felt that the additional 
exits will pay for themselves very quickly. 



16. Airport Improvement Program (A. I. P. No. 8) 

No. 87-0105 Resolution approving Project Applica- 

tion for A. I. P. Fund of $1 7 .8-mi 1 1 ion 
and requesting the Board of Supervi- 
sors to authorize filling of Project 
Application and acceptance of the 
resulting grant offer. 



CONSENT CALENDAR OF ROUTINE ADMINISTRATIVE MATTERS: 

The following items were unanimously adopted. 

17. Declaration of Emergency: 

Repair Broken Water Main - Airfield Between South and International 
Terminals - Not-to-Exceed $55,000 

No. 87-0106 



18. Resolution Approving Design Review of Foreign Exchange Signage for 
Bank of America 

No. 87-0107 Resolution approving the design review 

and authorizing Bank of America to 



Minutes, May 19, 1987, Page 13 



install new signage within their 
Foreign Exchange premises. 



19. Travel/Training for Airport Representatives 
No. 87-0108 



* * * 



K. CORRESPONDENCE: 

There was no discussion by the Commission. 



* * * 



M. ADJOURNMENT TO GO INTO CLOSED SESSION: 

There being no further calendared business before the Commission the 
meeting adjourned at 9:58 AM to go into closed session. 



Jean Caramatti 
Commission Secretary 



Minutes, May 19, 1987, Page 14 



s 



SAN FRANCISCO 
AIRPORTS COMMISSION 




DOCUMENTS DEPT. 
JUN gg 198? 

SA1M fRANCii*JO 

PURI.IO IIROADV 



MINUTES 



APRIL 21, 1987 



DIANNE FEINSTEIN, MAYOR 

COMMISSIONERS 

MORRIS BERNSTEIN 

President 

J. EOWARD FLEISHELL 

Vice-President 

OR. Z.L. GOOSBY 

ATHENA TSOUGARAKIS 

DON RICHARDS STEPHENS 



LOUIS A.TURPEIM 

Director of Airports 



San Francisco International Airport 
San Francisco, California 94128 



Index 

of the Minutes 

Airports Commission 

April 21 , 1987 



CALENDAR AGENDA 
SECTION ITEM 



TITLE 



RESOLUTION 
NUMBER 



PAGE 



A. 
B. 
C. 

D. 
E. 



CALL TO ORDER: 



ROLL CALL: 



ADOPTION OF MINUTES: 

Regular meeting of 

March 17, 1987 87-0077 



ANNOUNCEMENT BY SECRETARY: 



SPECIAL ITEM: 

Commendation for Airport 

Police Officer Burnor 87-0078 

Commendation for Sam Kennedy 87-0079 



ITEMS INITIATED BY COMMISSIONERS: 



ITEMS RELATING TO ADMINISTRATION, 
OPERATIONS & MAINTENANCE: 

Authorization to Open the Pre- 

Qual if ication Process and 

Receive Bids for the Airport 

Motor Service Agreement 87-0080 

Resolution Awarding lease of 

Shoeshine Stands in the South 

Terminal Building 87-0081 

Revision of Resolution on the 
Human Rights Commission Require- 
ments Clarification 87-0082 

Tenant Improvement: Conceptual 
Approval of U.A.L. Royal Pacific 
Lounge/Host Vista Lounge 

87-0083 

$8,500 Contract with The Mexican 
Museum, San Francisco 87-0084 



4-9 

9-12 

13 

13 
13 



CONSENT CALENDAR OF ROUTINE 
ADMINISTRATIVE MATERS: 

8. Award of Airport Contract No. 1564R: 
Rehabilitate Drainage Pump Station 

No. 1 87-0085 14 

9. Award of Contract No. 1802: 

Extend Blast Fence T/W § R16 87-0086 14 

10. Resolution Acknowledging Assign- 
ment of Leases - Republic Airlines, 

Inc. to Northwest Airlines, Inc. 87-0087 14 

11. Resolution Acknowledging Assignment 
of Leases - Western Airlines, Inc. 

to Delta 87-0088 14 

12. Request for Travel/Training for 
Airports Commission Represent- 
ative 87-0089 14 



I. CORRESPONDENCE: 15 



ADJOURNMENT TO GO INTO CLOSED 

SESSION: 15 



Minutes. April 21 , 1987, Page 2 



Minutes 

of the 

Airports Commission Meeting 

April 21, 1987 



A. CALL TO ORDER: 

The regular meeting of the Airports Commission was called to order at 
9:00 A.M. in Room 282, City Hall, San Francisco, Ca. 



ROLL CALL: 

Present: 



Morris Bernstein, President 

J. Edward Fleishell, Vice President 

Z.L. Goosby 

Athena Tsougarakis 

Don Richards Stephens arrived at 9:09 
AM 

Morris Bernstein left the meeting at 
9:50 AM. 



ADOPTION OF MINUTES: 

The minutes of the regular meeting of March 17, 1987 were adopted by order 
of the Commission President. 

No. 87-0077 



ANNOUNCEMENT BY SECRETARY: 



In accordance with Section "54957.1 of 
the Brown Act, Jean Caramatti , 
Commission Secretary announced 
unanimous adoption of resolution no. 
87-0076 directing the Director to 
modify the contract with the law firm 
of Liebert Cassidy and Frierson for an 
additional $50,000 at the closed 
session of Apri 1 7, 1987. 



Minutes, April 21 , 1987, Page 3 



E. SPECIAL ITEM: 

Items 1 and 2 were called together and unanimously adopted. 

1. Commendation of Police Officer Burnor 

No. 87-0078 Resolution commending the heroic 

actions of San Francisco International 
Airport Police Officer Lawrence Burnor 
in rescuing an unconscious man from 
his burning vehicle. 



Commendation for Sam Kennedy 

No. 87-0079 Resolution commending the heroic 

actions of Dollar Rent-A-Car employee 
Sam Kennedy in assisting Airport 
Police Officer Burnor in rescuing an 
unconscious man from his burning 
vehicle. 

Mr. Turpen told the Commission that Officer Burnor and Mr. Sam 
Kennedy exhibited extreme courage in the face of obvious danger to 
themselves in rescuing a man from a burning vehicle. Inspite of the 
danger, Officer Burnor and Mr. Kennedy managed to rescue the 
unconscious man by using a fire extinguisher to break a window, 
unlock the door and pull the man from his burning vehicle. He said 
that their actions are a credit to their respective organizations 
...Officer Burnor to the San Francisco Airport Police and the 
Airports Commission, and, Mr. Kennedy to Dollar Rent-A-Car. He 
commended both men for their outstanding bravery and sacrifice. 

Commissioner Bernstein said that both men should be commended and 
should go down in the annals of the Airport for their wonderful act 
of bravery. He expressed his pride in both men and thanked them. 

Commissioner Fleishell also commended both men. 

Commissioner Tsougarakis shook their hands. 

Officer Burnor thanked the Commission for its recognition and told 
them that he was simply doing his job. 

Mr. Kennedy also thanked the Commission for its recognition and said 
he was grateful that he was there to help. 



F. ITEMS INITIATED BY COMMISSIONERS: 

There were no items initiated by Commissioners 



G. ITEMS RELATING TO ADMINISTRATION, OPERATIONS AND MAINTENANCE: 
The following item was unanimously adopted as amended. 
3. Authorization to Open the Pre-Qual if ication Process and Receive Bids 
Minutes, April 21, 1987, Page 4 



for the Airport Motor Coach Service Agreement 

No. 87-0080 Resolution approving Agreement speci- 

fications and authorizing Director to 
open the pre-qual if ication process and 
receive bids for the Airport Motor 
Coach Service Agreement. 

Commissioner Bernstein told the audience that each speaker will be 
limited to three (3) minutes. He asked that comments of previous 
speakers not be repeated. 

Commissioner Bernstein asked Mr. Ed Burke, Sunshine Cab Company, if 
he wished to address the Commission. 

Mr. Turpen reminded the audience that the item before the Commission 
is an authorization to open the pre-qual ification process for the 
Airport Motor Coach Service Agreement and that is the matter to which 
their comments should be addressed. 

Mr. Burke said he was very concerned about the impact vans will have 
on the taxi industry when they are placed downstairs if they have 
given it any consideration. He asked what the Commission will do to 
help cab drivers keep their business. 

Commissioner Goosby told Mr. Burke that this item referred to buses, 
not vans. 

Mr. Burke asked when the Commission will discuss vans. 

Mr. Turpen responded that staff has not yet held a pre-bid conference 
on vans but thought it would take place within the next four to six 
weeks. Comments from the pre-bid conference will then be submitted 
to the Commission. He said that staff and the Commission are not 
even close to finalizing a decision on the vans. He said that the 
item currently before the Commission refers only to the Airport Motor 
Coach Service Agreement. There will be public notice on the pre-bid 
conference for vans. He asked Mr. Burke to leave his name with 
Sheldon Fein or someone else on staff so that he can be personally 
notified when that pre-bid conference is scheduled. 

Commissioner Bernstein asked Mr. Levicky, Yellow Cab Company, if he 
wished to address the Commission. 

Mr. Levicky said he wanted to address the same issue as the previous 
speaker. He told the Commission that he was very concerned about the 
effect SuperShuttle and the other van companies were having on the 
taxi industry as they are seriously jeopardizing the livelihood of 
cab drivers. He said he would like to participate in the next 
hearing on this issue. 

Mr. Turpen told the audience that anyone wanting to participate in 
the pre-bid conference on vans should contact Landside Operations. 
He said that Mr. Fein is present and will be happy to provide 
information on when the pre-bid conference will take place. 

Commissioner Bernstein asked Mr. George England, Luxor Cab Company, 
if he wished to address the Commission. 

Mr. England said he felt very threatened about the changes going on 
at the Airport. 

Commissioner Goosby reminded Mr. England that this item referred to 
the buses only. 



Minutes, April 21 , 1987, Page 5 



Mr. England said he understood. He said he felt that the change 
being brought about was due to "unregulation" rather than 
"deregulation". He said that relocating the buses away from the 
terminal to the island is going to create additional traffic and will 
seriously impact the cab companies. It will not serve public 
convenience to move the buses further away from the terminals and 
will create a more confusing situation as buses and taxis will be 
picking up and droping off at the same location. 

Mr. England said that SuperShuttle is operating in the same fashion 
as taxi companies except they are working with an exclusive trade, 
people going to and from the Airport. The difference between cabs 
and vans is that the cabs provide service to the wheelchair bound, 
and to elderly passengers in walkers, taking them to and from the 
grocery store or wherever they want to go, 24-hours-a-day, door-to- 
door. Public convenience will not be served by moving the buses 
further away from the termninal. He felt that they all should be 
regulated, not just one. 

Commissioner Bernstein asked Mr. Bill Reardon if he wished to address 
the Commission. 

Mr. Reardon said he had the same concerns as the previous speakers 
but this meeting was not the proper forum to discuss this issue. He 
said he will reserve his comments until the appropriate time. 

Commissioner Bernstein thanked Mr. Reardon. He asked Mr. Jeff 
Leonoudakis, SFO Airporter, if he wished to address the Commission. 

Mr. Leonoudakis said that the specifications, as presently written, 
are unfair. The Commission is reducing service, cutting headways 
from the current level of every 15-minutes to every 30-minutes, and 
the bus zones are being moved from curbside to the island. He felt 
this was a disservice to the public. He did not see a need to reduce 
service during a time when the Airport is growing and needs more 
service. His company also felt it was unfair that the specifications 
for the van agreement are going to allow the vans to load at 
curbside. He said that the new bus operator will feel a tremendous 
impact, as will the limousine operator, the cabs, and the other van 
operators who currently operate upstairs. He asked the Commission to 
reconsider the new specifications for the Motor Coach Agreement. 

Mr. Leonoudakis also told the Commission that his company was very 
concerned about the status of the downtown terminal. He asked the 
Commission what will become of the terminal if there are no viable 
bus bidders. He asked if Airporter was supposed to assume that 
financial obligation. 

Mr. Turpen responded that the Airport would expect that there will be 
viable bidders. In the event there are no bidders, the Commission 
will cross that bridge at that point. He said that staff does not 
forecast a failure to respond to a service which carried almost 
one-million passengers last year. 

Mr. Leonoudakis said that his company then has no guarantees. 

Mr. Turpen responded that that is not what he said. He said that 
staff expected bidders for this agreement and in that event, the 
agreement between Leaseco and SFO Airporter and the Airports 
Commission concerning the downtown terminal will prevail. 

Mr. Leonoudakis said that SFO Airporter would like to be on record 
that they would expect the terminal to be assumed in the event that 
there are no bidders for this contract. He said that the way these 



Minutes, April 21, 1987, Page 6 



specifications are going out it's very possible that there will be no 
qualified bidders. 

Commissioner Bernstein asked Mr. Hal Muskat, SuperShuttle, to address 
the Commission. 

Mr. Muskat said he did not wish to speak at this time. 

Commissioner Bernstein said he had no other requests to address the 
Commission. 

Mr. Turpen said that the item before the Commission is an authori- 
zation to open the pre-qual ification process for the Airport Motor 
Coach Service Agreement. He said that a substantial period of time 
has passed since the last pre-qual ification of potential bidders for 
this agreement. The Commission's authorization will allow staff to 
initiate a process whereby persons wanting to bid on this agreement 
will be asked to provide certain information to the Airport so that 
it can be evaluated and shared with the Commission. 

Commissioner Goosby asked how many people were involved in the last 
pre-qual if ication process. 

Mr. Turpen responded that there were five. He explained that this is 
a processing step, prior to bidding, which establishes a pool of 
qualified bidders. Upon completion of that process staff will 
provide the Commission with a list of those persons who have success- 
fully passed the screening requirements. He thought it would take 
six to eight weeks to obtain a pool of applicant. He stressed that 
this does not entail a bid, it is simply a screening of potential 
bidders to ensure that everyone who bids can meet the specifications. 
He asked the Commission to support his recommendation and allow staff 
to move ahead with the process. 

Commissioner Bernstein said he will not vote on anything until he 
knows the entire package. He will not vote on pieces. 

Commissioner Goosby said the Commission will have the opportunity to 
look at it again when staff returns with a list of qualified bidders 
for approval. It will not go to bid unless the Commission has 
approved that list. 

Commissioner Bernstein asked when the vans will be bid. 

Mr. Turpen responded that a pre-bid conference for vans will be held 
and will take four to six weeks before the Commission will receive 
those comments. 

Commissioner Bernstein asked if the Commission will vote on pieces or 
the whole thing. 

Mr. Turpen responded that at this point the only thing the Commission 
will be approving is the list of potential bidders who have met the 
qual if ications . 

Commissioner Bernstein said he would vote on it in that case. 

Commissioner Bernstein asked Mr. Richmond Loewinsohn, United Taxi 
Workers, if he wished to address the Commission. 

Mr. Turpen again 'old the audience that the matter before the 
Commission is the Airport Motor Coach Service Agreement. Those 
persons interested in the vans should contact Sheldon Fein to assure 
notification of the pre-bid conference. He explained that the 



Minutes, April 21, 1987, Page 7 



pre-bid conference is an informal forum where interested parties can 
offer suggestions and share thoughts. The pre-bid conference for 
vans will be coming up within the next 30 days. 

Mr. Loewinsohn said that vans are not being fined $300 but cab 
drivers are. He said that it is common knowledge that one must have 
an appointment to ride a van. 

Commissioner Bernstein asked Mr. Tony Ruiz, Lorries, if he wished to 
address the Commission. 

Mr. Ruiz said he shared the Commission's sentiments. He felt this 
was a divide and conquer issue with the Airporter contract is being 
pushed aside. He said that there will be a preliminary discussion on 
the buses, they will be pre-qual ified and then bid. The vans will 
then be discussed and there will be a bid on that. 

Commissioner Bernstein said that this is just to establish a pool of 
potential bidders. 

Mr. Turpen explained that once a qualified pool is established the 
Commission will have to grant authorization to bid. The Commission 
can either give its authorization, refuse authorization, or instruct 
staff to restructure the manner in which it is bid. He said that the 
van bid will run simultaneously. It will take four to six weeks to 
conduct a pre-authorization on the buses and the pre-bid conference 
for the vans will be held within three to five weeks. The pre- 
authorization on the buses and the results of the van pre-bid 
conference will probably come up simultaneously. 

Mr. Ruiz felt that the two should be handled together. 

Commissioner Bernstein told Mr. Ruiz that they will not be handled 
that way. 

Commissioner Bernstein asked Mr. John Diamante if he wished to 
address the Commission. 

Mr. Diamante, speaking for a number of drivers in the Taxi Drivers 
Alliance, said they are very upset by this proposal. By favoring the 
vans the Commission will re-shape the taxi industry in the entire 
City, not just at the Airport. 

Commissioner Tsougarakis told Mr. Diamante that the Commission is not 
discussing vans. 

Commissioner Goosby said the Commission is discussing an authoriza- 
tion to pre-qual ify potential bidders for the Airport Motor Coach 
Service Agreement, not the vans. 

Mr. Diamante said that he was addressing the specifications for 
pick-up and notification, in particular the suggestion for the 
posting of signs in the Airport. He said the specifications call for 
notification to arriving passengers at the baggage carousel levels. 
Members of the Taxi Cab Alliance have been negotiating with staff for 
a couple of years to provide notification to passengers that the 
cheapest, fastest and safest mode of transportation to the City a 
shared cab riade. 

Commissioner Fleishell told Mr. Diamante that the issue he is 
discussing is not before the Commission. The fact that he has been 
unable to successfully negotiate with staff to get his signs up has 
nothing to do with the proposed provisions with regard to the Airport 
Motor Coach Agreement. 



Minutes, April 21 , 1987, Page 8 



Mr. Diamante said that the specifications spell out in two places 
conditions for advertisements for ground services to passengers which 
directly competes with the taxi industry. He said that the pick, up 
points also directly compete with these specifications. 

Commissioner Bernstein again said that this item merely establishes a 
pool of bidders . 

Mr. Diamante argued that the specifications for the pool of bidders 
shuts out the taxi industry. 

Commissioner Bernstein told Mr. Diamante that taxis were not being 
discussed. 

Commissioner Bernstein asked Mr. Bob Franklin if he wished to address 
the Commission. 

Mr. Franklin declined to speak. 

Commissioner Goosby said that part of the confusion is that the 
resolution also authorizes the bid but this is just supposed to be a 
pre-qual ification for a pool of bidders. 

Mr. Turpen said that is correct. 

Commissioner Goosby asked that the last resolve in the resolution be 
el iminated. 

Mr. Turpen assured the Commission that it will not be bid without 
Commission approval . 



The following items were unanimously adopted by the Commission. 
Commissioner Bernstein left the meeting during the discussion of Item 
No. 4. 

Resolution Awarding Lease of Shoeshine Stands in the South Terminal 
Bui lding 

No. 87-0081 Resolution awarding the Lease of 

Shoeshine in the South Terminal 
Building to Shoeshine Unlimited. 

Mr. Turpen said that this matter was put over at the last meeting at 
the request of Mr. Walter Caplan who is associated with A Step Up. 
He recommended Commission approval as written. He said that it was 
his understanding that Mr. Caplan handed the Commission a letter (see 
attached) outlining his concerns. Mr. Turpen said he asked George 
Wong, Acting Airports General Counsel, to review that letter. 

Mr. Wong told the Commission that he has reviewed A Step Up's letter 
protesting award to Shoeshine Unlimited and he finds that 1t has no 
merit. The protest is based on three items which Mr. Caplan believes 
the Shoeshine Unlimited bid does not contain: 1) No financial state- 
ment was submitted with the bid for two of the partners. Mr. Wong 
said he spoke with Jerry Copelan, Property Management, who told him 
that those financial statements have been submitted. 2) No listing 
of gross income receipts were submitted for the years from 1982 
through 1986. Again, those income receipts have been submitted. 

Mr. Wong said that those items do not make the bid invalid. He 
explained that there are two aspects to the bidding process, the 
responsiveness of the bid and the responsibility of the bidder. The 



Minutes, April 21 , 1987, Page 9 



two items Mr. Caplan mentioned deal with the responsibility of the 
bidder, namely whether or not he can do the job, and whether or not 
he has enough capital and enough experience; it is not the respon- 
siveness of the bid. Items regarding the responsiveness of the bid 
must be submitted with the bid. These do not deal with responsive- 
ness therefore the items can be received and considered by staff 
after the bid opening. 

Mr. Wong said that the second item Mr. Caplan alluded to is that the 
partnership has not been registered with the County Clerk. Mr. Wong 
explained that there is no requirement in the bid process, or any 
requirement in State law, that a partnership must be registered with 
the County Clerk before a bid can be received. Mr. Wong said that 
Mr. Copelan informed him that since submitting the bid Shoeshine 
Unlimited has become a corporation. He said he finds nothing wrong 
with that. The same individuals formed the partnership and the 
corporation and it is the same individuals who will be bound by the 
contract should it be awarded to the entity. 

Commissioner Fleishell asked Mr. Wong if he was saying that one 
entity can bid and after winning the bid can change from a partner- 
ship to a corporation, thereby changing the formation of the company. 

Mr. Wong said that there was nothing wrong with that in the sense 
that if staff believes it's the same entity with the same responsi- 
bility, it's not a problem. It's frequently done after award of a 
contract. 

Commissioner Fleishell said he has never heard of this before. A 
partnership has individual liability, a corporation does not. 

Mr. Wong said that that may be the case but the larger question is 
whether that partnership or corporation can perform the contract. He 
said that a performance bond is submitted with the bid. 

Commissioner Fleishell said that he was satisfied if Mr. Wong was 
satisfied. 

Commissioner Bernstein asked Mrs. Viola Washington if she wished to 
address the Commission. 

Mrs. Washington said that there was a lot of controversy over a bid 
that she and her son, Clarence, submitted for the International 
Terminal Shoeshine Stand. They were asked to submit the performance 
bond and the certificate of deposit but in the interim Mr. Copelan 
said that they couldn't have the lease because these attachments were 
missing from their bid. She said that these items were missing from 
the South Terminal bid submission as well but it was held over for 
three months. She said she wasn't even given three days. They were 
the only bidders for that lease and she and her son were still 
interested in obtaining the International Terminal Shoeshine Stand. 
Mrs. Washington asked if they could take possession of the stand in 
the future. 

Ms. Angela Gittens, Deputy Director, Business and Finance, said that 
this item came before the Commission two meetings ago. She explained 
that there was no bid bond submitted with the bid, so it was not 
merely a matter of changing the formation of the bidding entity, 
there was no bid bond. She said that it was two weeks from the date 
of the bid opening to the time staff came to the Commission and no 
bid bond had ever been submitted. The Commission rejected all bids. 

Commissioner Goosby said that Mrs. Washington and her son would then 
have the opportunity to bid again. 



Minutes, April 21, 1987, Page 10 



Mr. Turpen told Mrs. Washington that If she left her name and number 
with Ms. Gittens she would be notified of the next bid process. 

Mr. Walter Caplan, A Step Up, said that he found out late yesterday 
afternoon that staff still does not have adequate information upon 
which to recommend approval of this lease. He said that he has been 
before the Commission on two prior occasions regarding two prior bids 
for this lease. He complained that over an 18-month period the staff 
has not been able to submit to the Commission a recommendation for 
approval of a responsible qualified bidder. He said that he first 
raised this issue with the first bid and all of the bids were thrown 
out. He again raised the same issue of whether or not the top bidder 
was a responsible qualified bidder. At that time staff had not told 
the Commission that the highest bidder was in arrears on other rents 
at the Airport. With respect to the bid before the Commission today, 
Shoeshine Unlimited submitted a bid in late February claiming they 
were a partnership. The purpose of a partnership being registered 
with the County Clerk is to know who the partners are and liability. 
Shoeshine Unlimited never registered a partnership. Corporate 
documents were sent to Sacramento a month later and were rejected. 
He said that Airport staff does not have information about this 
corporation, such as whether it issued shares, how many shares, or, 
to whom the shares were issued. 

Commissioner Bernstein interrupted Mr. Caplan and told him that he 
just heard Mr. Wong offer his opinion. 

Mr. Caplan said he does not believe that Mr. Wong is aware of all of 
the issues he is presenting to the Commission. 

Commissioner Bernstein said that Mr. Wong indicated that these items 
are not necessary. 

Mr. Caplan said that he disagreed with Mr. Wong. 

Commissioner Goosby told Mr. Caplan that he is free to give his 
opinion and the Commission will listen to it but the Commission will 
vote today. 

Mr. Caplan said that the issue is that staff does not have in its 
files, as is required by the bid documents, information about a 
partnership or information about a corporation. He said he gave the 
Commission a copy of the bid documents which requires that corpora- 
tions must provide the number of shares owned by the Directors and 
the officers, and, if partners own more than 10 percent. To date, 
the Airport does not have that information. He said that his client, 
who has spent $5000 of his money and has been working on this for two 
years, still has not had the opportunity to get a lease. He believes 
that these people have not demonstrated to the staff that they are 
responsible qualified bidders. The bid documents that complete the 
application and give staff the basis upon which to recommend approval 
do not exist in the files. 

Commissioner Bernstein told Mr. Caplan that the Commission is bound 
to accept the advice of the City Attorney. The City Attorney states 
that it is not necessary to have that information so it is not enough 
to di squal ify the bid. 

Mr. Caplan said that is not exactly what Mr. Wong said. 

Commissioner Goosey told Mr. Caplan that the Commission was not going 
to argue with him. 

Mr. Wong said that the bid opening was on February 25, 1987 and 
Minutes, April 21 , 1987, Page 11 



Mr. Caplan waited two months to present the Commission with a protest 
letter. He said he finds this very disturbing. 

Mr. Caplan said he has a right, on behalf of his client, to present 
any impropriety to the Commission. He said that the Commission does 
not have adequate information to make a decision. 

Commissioner Stephens asked Mr. Caplan if he was a principle in this 
company. 

Mr. Caplan responded that he is a minority partner in this venture. 

Commissioner Stephens recalled that Mr. Caplan had earlier stated 
that the bidder was going to work this job with his own hands and 
asked if that meant him. 

Mr. Caplan responded that he was referring to the majority partner, 
Mr. Jones. He said that he origninally became an assistant in this 
bid process because the first two times it was bid there was a 
requirement that the bidding entity be able to show that over the 
prior three years they have run a business of over a certain amount 
of gross receipts. He said that in order to help Mr. Jones get into 
this business he offered to join hands. He said that it was never 
his intention to run a shoeshine stand. 

Mr. Williams said that his clients, Shoeshine Unlimited, have put 
their money on the line and they are prepared to increase the deposit 
required to meet the bid performance. He said it is a question of 
whether or not they can reasonably be expected to perform and collect 
the rents. They were organized specifically to bid on this 
concession and it was so stated in the package. It was also stated 
that they would provide all the financial requirements essential to 
perform this contract and they have done that. He explained that one 
of the partners needed to protect his other business from liability 
and that is why they changed from a partnership to a corporation. He 
assured the Commission that the Airport does not have to worry about 
penetrating the corporate veil. All of the principles in Shoeshine 
Unlimited have already agreed and given assurances to the staff that 
they fully intend to personally sign on and take responsibility for 
the lease payments. He said that the allegation that the corporation 
is out to dupe the Airport or to avoid payments on the lease is a 
ruge on the part of those who are complaining. 

Commissioner Stephens asked Mr. Williams how long his clients have 
been at the Airport. 

Mr. Williams responded that they have been at the Airport for 25 and 
27 years. 

Commissioner Stephens asked if anyone else owns part of their 
business . 

Mr. Williams responded that they have a third partner who is their 
insurance agent and who has been their insurance agent for the last 
15 years. He is an equity participant and raises the capital 
required to perform and meet the requirements of the bid. He also 
told the Commission that the insurance agent is a qualified MBE with 
the HRC. 



Minutes, April 21, 1987, Page 12 



Revision of Resolution on the Human Rights Commission Requirements 
Clarification 

No. 87-0082 

Mr. Turpen told the Commission that this resolution clarifies some 
language as requested by the Commission. 



6. Tenant Improvement: 

Conceptual Approval of U.A.L. Royal Pacific Lounge/Host Vista Lounge 

No. 87-0083 Resolution conceptually approving the 

U.A.L. Royal Pacific Lounge/Host Vista 
Lounge Tenant Improvement projects in 
the International Terminal, Boarding 
Area 'D'. No cost to Airport. 

Mr. Turpen explained that this is a conceptual approval of a lounge 
for United Airlines in view of their acquisition of the Pan Am 
Pacific route system. He said that space is non-existent for such a 
lounge and based on the under-uti 1 ization of the Vista Bar staff is 
recommending a short term, five-year agreement with United and Host, 
to allow United to use that space. If, during the interim, space 
becomes available elsewhere in Boarding Area 'D' United has agreed, 
as part of this package, to relocate at the Commission's request. 

Mr. Turpen said that United requires conceptual approval in order to 
continue to move ahead with this project. They want very much to get 
this in place before the summer rush. 

Commissioner Tsougarakis said she was at the Airport yesterday and 
saw that the Vista is obviously under utilized. 



$8,500 Contract with The Mexican Museum, San Francisco 

No. 87-0084 Approval of exhibition Mexican Folk 

Art to be displayed May 4, 1987 to 
August 30, 1987 and authorization of 
Contractual Agreement between Airport 
and The Mexican Museum in the amount 
of $8,500. 

Commissioner Tsougarakis asked if there was any out-of-pocket money 
spent on the Asian Exhibit up to this time. 

Mr. Turpen said he was not certain but believed that there was. He 
asked Commissioner Tsougarakis if she was referring to the 
cancel lation. 

Commissioner Tsougarakis responded yes. She said she would like the 
Asian Commission to be made aware of it. She said it was her 
understanding that they cut the Airport off at the last minute. 



Minutes, April 21 , 1987, Page 13 



CONSENT CALENDAR OF ROUTINE ADMINISTRATIVE MATTERS: 

The following items were unanimously adopted. 

8. Award of Airport Contract No. 1564R: 

Rehabilitate Drainage Pump Station No. 1 

No. 87-0085 Resolution awarding Contract No. 1564R 

to Lim & Associates in the amount of 
$306,400. 



Award of Contract 1802: 
Extend Blast Fence T/WA @R16 

No. 87-0086 Resolution awarding Contract 1802 to 

Dalzell Corporation in the amount of 
$140,870. 



10. Resolution Acknowledging Assignment of Leases - Republic Airlines, 
Inc. to Northwest Airlines, Inc. 

No. 87-0087 Resolution acknowledging assignment of 

leases from Western Airlines, Inc., to 
Delta Airlines, Inc. by merger. 

Commissioner Goosby said that W.P. Young, Inc and Mock took advantage 
of the MBE/LBE preference for the pump station but did not use it on 
the blast fence (item no. 9). HRC said it waived the MBE require- 
ments due to the limited subcontract opportunity. He said he does 
not understand why they didn't take advantage of* it. He asked if it 
was because of the amount of the bid. 

Mr. Wong responded that what most likely happened was that they did 
not check off HRC Form 6, indicating that they were an MBE/LBE, for 
the second bid. He said if a bidder is requesting a preference, HRC 
requires that Form 6 be checked off. They probably forgot to check 
the form. 

Mr. Turpen said he would be happy to investigate the situation and 
advise Commissioner Goosby as to why the form was not checked. 



11. Resolution Acknowledgng Assignment of Leases - Western Airlines, Inc. 
to Delta 

No. 87-0088 Resolution acknowledging assignment of 

leases from Western Airlines, Inc. to 
Delta Airlines, Inc. by merger. 



12. Request for Travel /Training for Airports Commission Representatives 
No. 87-0089 



Minutes, April 21, 1987, Page 14 



I. CORRESPONDENCE: 

There was no discussion by the Commission, 



* * * 



K. ADJOURNMENT TO GO INTO CLOSED SESSION: 

There being no further calendared business before the Commission the 
meeting adjourned at 9:59 AM to go into closed session. 



"Ik- 



C (u^n^A-ft 



Jeyan Caramatti 
Jmmission Secretary 



Minutes, April 21, 1987, Page 15 



s 



81 



SAN FRANCISCO 
AIRPORTS COMMISSION 




MINUTES 



qocument8 dept. 

auqd 

SAN FKANCISGO 
PliRIJO LIROApv 



JUNE 2, 1987 



DIANNE FEINSTEIN, MAYOR 

COMMISSIONERS 

MORRIS BERNSTEIN 

President 

J. EDWARD FLEISHELL 

Vice-President 

DR. Z.L. GOOSBY 

ATHENA TSOUGARAKIS 

DON RICHARDS STEPHENS 

LOUIS A.TURPEN 

Director of Airports 

San Francisco International Airport 
San Francisco, California 94128 



Index 

of the Minutes 

Airports Commission 

June 2, 1987 



CALENDAR AGENDA RESOLUTION 

SECTION ITEM TITLE NUMBER PAGE 



A. CALL TO ORDER: 3 

B. ROLL CALL: 3 

C. ADOPTION OF MINUTES: 

Regular meeting of 

April 7, 1987 87-0109 3 

D. ANNOUNCEMENT BY SECRETARY: 3 

E. ITEMS INITIATED BY COMMISSIONERS: 

Rescind Boarding Area 'E' Bids 87-0109-A 3-5 

Master Plan (West of Bayshore/ 

Garage) 5 

Ground Transportation Consultant 87-0109-B 6-7 



ITEMS RELATING TO ADMINISTRATION, 
OPERATIONS & MAINTENANCE: 

Resolution Awarding the Lease 
of Cigarette Vending Machines 
in the International Terminal 87-0110 7-8 

Professional Services Agreement - 

$58,000 - Richard Lack - 

Professional Safety Consultant 87-0111 8 

Tenant Improvement: Delta 

Airlines - Facility at Plot 12 

- T-3247 - $1,800,000 - No 

Cost to City 87-0112 8 

Tenant Improvement: American 

Airlines - North Terminal 

Ticket Counter, Offices, and 

Gate Area Remodel - T-3272 - 

$400,000 - No Cost to City 87-0113 8 



CONSENT CALENDAR OF ROUTINE 
ADMINISTRATIVE MATTERS: 



5. 


Retirement Resolution: 








Thomas Mai im 


87-0114 


9 


6. 


Retirement Resolution: 








Gui 1 lermo Ortiz 


87-0115 


9 


7. 


Type II Modification for 







Contract 1410EF, South 

Terminal Phase II 87-0116 

8. Airport Development Aid Program 
(ADAP No. 4) Amendment No. 1 to 
Grant Agreement 87-0117 



CORRESPONDENCE: 



ADJOURNMENT TO GO INTO CLOSED 
SESSION: 



Minutes, June 2, 1987, Page 2 



Minutes 

of the 

Airports Commission Meeting 

June 2, 1987 



A. CALL TO ORDER: 

The regular meeting of the Airports Commission was called to order at 
9:00 A.M. in Room 282, City Hall, San Francisco, Ca. 



B. ROLL CALL: 

Present: 



Morris Bernstein, President 

J. Edward Fleishell, Vice President 

Z. L. Goosby 

Athena Tsougarakis 

Don Richards Stephens 



C. ADOPTION OF MINUTES: 

The minutes of the regular meeting of April 7, 1987 were adopted by order 
of the Commission President. 

No. 87-0109 



ANNOUNCEMENT BY SECRETARY: 



In accordance with Section 54957.1 of 
the Brown Act, Jean Caramatti , 
Commission Secretary, announced 
unanimous adoption of Resolution No. 
87-0108 regarding the settlement of a 
claim at the closed session of May 19, 
1987. 



ITEMS INITIATED BY COMMISSIONERS: 

Commissioner Goosby asked if there was a possibility of withdrawing the 
bids for Boarding Area 'E' for 20-30 days while an evaluation is made on 
whether or not the bid should contain provisions for MBE/WBE participa- 
tion. The bids can then be reissued with any inclusions staff and the 
Commission may wish to make. 

Mr. Turpen, Airport Director, said that this bid went out in the standard 
principal concession format and was rejected. Staff went through a series 
of discussions with the Human Rights Commission in an attempt to come up 



Minutes, June 2, 1987, Page 3 



with something. The decision was made to bid it as a straight business 
concession without any minority opportunities in terms of set asides. 
Since the time the Commission authorized the bid there has been a 
re-thinking of the earlier denials of the principal concessionaire 
concept. He said that from the Commission's consistent perspective it 
would desirous to maintain that concept. 

Mr. Don Garibaldi, Airports General Counsel, told the Commission that it 
has the authority to postpone the bid opening date as well as the 
authority to cancel the invitation for bids. 

Commissioner Fleishell said that his concern is that there is nothing 
before the Human Rights Commission to act upon other than to offer their 
general statement based upon earlier presentations made to them by staff. 
He did not mind the 30 day delay but he did not want it extended again and 
again. He said that Mr. Turpen points out in his memo that a great deal 
of money has already been lost by not having this concession open and 
every day that goes by the Airport loses more money. He said that if 
staff could get a commitment from HRC that they will agree to a specific 
set of documents he would agree to the 30-day delay but he does not want 
this to drag on. He asked if staff objected to the 30-day delay. 

Mr. Turpen responded that he would not object to a 30-day delay but he 
thought that a July 1 deadline should be established for HRC agreement 
with the Airport's original specifications. In that regard he suggested 
suspending the bidding for 30-days for re-evaluation and notifying the 
interested parties. At the end of that 30-day period the bidding process 
can be reinstated and the bid opening date adjusted by 30-days, or, a new 
set of bid specifications can be issued and a call for new bids will go 
out. He said that in any event this delay has put us beyond the peak 
summer season. There will be no further reviews, considerations, or 
amendments at the end of the 30-days. 

Commissioner Fleishell asked Mr. Garibaldi if a motion could be made 
creating this 30-day interim and worded in such a way that the matter need 
not return to the Commission for adoption of the earlier specifications. 

Mr. Garibaldi responded that if the Commission intends to proceed with the 
current specifications that can be done without any problems. 

Commissioner Fleishell made the motion that the bid process be delayed 
until July 1. If, at that time, the HRC has approved our original set of 
specifications, staff is directed to move ahead on the existing set of 
specifications without further Commission action. 

The resolution was unanimously adopted. 

No. 87-0109-A 

Mr. Jim Jefferson, San Francisco Black Chamber of Commerce, complimented 
the Commission on its fine MBE/WBE record. He said that the principal 
concession approach has worked well and has been beneficial to the MBE's 
and WBE's. He asked if there would be any opportunity, during the 30-day 
period, to explore the structure of the bid. He also asked if the 
Commission meant just the original bid specifications. 

Mr. Turpen responded that it was just the original bid specifications. He 
said the Commission will either go with what it presently has or the 
original bid specifications, which were basically the principal 
concessionaire specifications. 

Mr. Jefferson said that his concern was whether or not the interim 
problems can be worked out with the City Attorney and the HRC. He felt 
that there may be a necessity to slightly augment those particular 



Minutes, June 2, 1987, Page 4 



specifications in some way and asked if that would be a violation of the 
Commission's resolution. 

Mr. Turpen responded that it would. He said that in view of the short 
time frame and the Airport's previous experience with the HRC, introducing 
any other concept at this time would defeat any opportunity for 
reinstating our previous specifications. 

Commissioner Goosby said that the HRC had a problem with the City 
Attorney's opinion in certain matters. He said that there should be a 
clarification and wording changes to satisfy the City Attorney. He said 
that a legal question is holding up the HRC and, hopefully, if it can be 
straightened out to their satisfaction, it will be approved. 



Commissioner Bernstein asked what was happening with the West of Bayshore 
Property. 

Mr. Turpen responded that the West of Bayshore property has been included 
with all of the Airport property for planning purposes. He reminded the 
Commission that at one time the Airport was precluded from using that 
property. Presently, at the Commission's suggestion and the Mayor's 
agreement, the West of Bayshore property is considered part of the Airport 
and is being looked at as part of the master planning process. That 
process will conclude in the first part of 1988. At that time the 
Commission will have a series of alternatives for the use of that property 
as well as plans for its access. 

Commissioner Tsougarakis asked if that study is also considering the 
center of the garage. 

Mr. Turpen responded that he would not say that the study is directed to 
the hole in the garage. At one time a decision was made not to proceed 
with that area. No commercial opportunity has been explored for several 
reasons. He said that a study was done several years ago to determine 
what could and could not be done in the center of the garage. He 
explained that the garage was designed with a hole in the center to 
provide for ventilation, circulation and carbon monoxide control. 
Anything built in that area would have to be constructed on a spire and 
would cost millions and millions of dollars. He told the Commission that 
it would have cost $1 7-mi 1 1 ion to build the control tower in that location. 

Commissioner Tsougarakis asked if the group working on the master plan was 
aware of the study. 

Mr. Turpen responded that they are aware of the study and the hole in the 
garage. If the Commission wants the master planning effort to come up 
with alternatives for the hole in the garage, consistent with the physical 
constraints, that can be arranged. 

Commissioner Tsougarakis asked how many years the master plan will cover. 

Mr. Turpen responded that it is a five-year operating plan with a 15-year 
horizon. 

Commissioner Tsougarakis felt it should be included, given the length of 
time, even if the study suggests it's not feasible to do anything. 

Mr. Turpen said that the Commission will most likely see a rough-cut in 
about three-months. 

Commissioner Goosby asked for a quarterly briefing. 
Minutes, June 2, 1987, Page 5 



Commissioner Bernstein reminded the Commission that at the last meeting he 

suggested hiring a traffic consultant. 

Mr. Turpen said that staff can proceed if the Commission desires. A list 
of potential consultants can be put together or the Commission can submit 
names. Staff can then conduct the interviews and return to the Commission 
with a recommendation. 

Commissioner Tsougarakis agreed. 

Mr. Turpen said that staff can develop a proposal, contact and interview 
all consultants. The top four or five consultants will then be presented 
to the Commission for selection. 

Commissioner Tsougarakis asked how the problem will be presented to the 
consultant. 

Mr. Turpen said that the consultant can create a ground transportation 
plan for the Airport, recognizing the Airport's demands and ignoring what 
exists. The alternative is to do an operational audit, taking a look at 
the current plan and commenting on its effectiveness and validity as well 
as recommending changes for improvement. He thought that the first 
alternative would be far more expensive. 

Commissioner Tsougarakis said that the statistics staff assembled on 
ground transportation are a good ground work for a consultant as a lot of 
the basic research work has been done. In either case, it might not be as 
expensive as it could be if the consultant came in and created a new plan. 

Mr. Turpen said that it is a question of expense and time. If the 
Commission wants an evaluation of where we are and an indication of where 
we need to go, a review is the better idea. The Commission can always go 
to the next step after the review has been completed. 

Commissioner Goosby felt that a study would show the industry that the 
Commission agreed with the idea and supports the Airport's position in the 
event a lawsuit develops. It could be a first step in the event any 
glaring errors are found. 

Commissioner Fleishell said that consultants are hired to offer advice but 
in this instance his advice will be limited by contractual restraints. 
The consultant may decide that current operators should be moved around, 
but because of the political force of the taxi organization the move would 
be minimal. In addition, there is a contract and a lawsuit with the 
limousines. If the decision is to combine the buses and the shuttles into 
one contract, the Airport will not move ahead with its ground transporta- 
tion agreement and we will lose a great deal of money. He felt that the 
best finding the Airport could hope for from the consultant is for him to 
advise that what the Airport is doing is fine but that he would do it 
another way. 

Commissioner Tsougarakis agreed with Commissioner Fleishell but felt that 
the Airport needs to understand whether or not our contractual agreements 
are moving in the right direction because of the way the transportation 
market is changing. If we have confidence in our system we can start 
moving as our contracts come up. 

Commissioner Fleishell remarked that once the bids go out the consultant 
will be limited in his ability to offer advice on how it should have been 
handled. 

Commissioner Tsougarakis said that the Commission President has indicated 
that he does not want to vote on any transportation issues until the 
Commission has evidence that the Airport is moving in the right direction. 



Minutes, June 2, 1987, Page 6 



Commissioner Stephens said that having gone through the turmoil created in 
the ground transportation area he would hate to see progress stopped to 
wait for advice from another consultant that we won't be able to follow 
because of existing contracts. 

Commissioner Tsougarakis asked if the Commission was confident that we are 
moving in the right direction. 

Commissioners Goosby and Stephens said that they were confident. 

Commissioner Goosby said he would go along with hiring a consultant 
because Commissioner Bernstein wanted it but he was prepared to accept 
staff's recommendations. 

Commissioner Tsougarakis said she was reasonably confident but wouldn't 
mind a study. 

Commissioner Bernstein said he did not share that confidence. He did 
agree that the problems may not have been created by staff but rather by 
the architects. 

Commissioner Tsougarakis argued that it's a small area and there's a lot 
of traffic. 

Commissioner Bernstein reminded the Commission that many years ago the 
West of Bayshore area was being considered as a staging area for buses and 
taxis. 

Commissioner Flei shell said that staff knows more about this than the 
Commission does. He said that the Airport could hire an architect 
specializing in this field for a period of three days and at a cost of 
$5,000. He said the Airport and its roadways are under design and cannot 
be changed. He felt that the Airport should move ahead with the bid and 
immediately begin looking at experts to do a study. 

Mr. Turpen suggested a $10,000 maximum. 

Commissioner Stephens added that this should not hold up the current 
process and should be done within that framework. 

Mr. Turpen said staff will move quickly to find a consultant and seek 
ratification by the Commission. 

Commissioner Bernstein said that the Chief of Police gave him the name of 
someone specializing in this field. 

Commissioner Flei she 1 1 said that there is an architect in Oakland that he 
has used and would provide the Director with his name. 

The Commission unanimously voted to hire a consultant. 

No. 87-0109-B 



F. ITEMS RELATING TO ADMINISTRATION, OPERATIONS & MAINTENANCE: 

Item No. 1 was unanimously adopted by the Commission. 

1. Resolution Awarding the lease of Cigarette Vending Machines in the 
International Terminal 

No. 87-0110 Resolution awarding the lease of 

Minutes, June 2, 1987, Page 7 



cigarette vending machines in the 
International Terminal to J.V. Vending, 



Item No. 2 was adopted by a 4-1 vote with Commissioner Bernstein casting 
the dissenting vote. 

2. Professional Services Agreement - $58,000 

Richard Lack - Professional Safety Consultant 

No. 87-0111 Proposed resolution approving the 

professional services agreement with 
Richard Lack to administer the 
Occupational Safety Program at the 
Airport. 

Commissioner Goosby asked if this would be a permanent addition to 
the staff. 

Mr. Turpen responded that this is a consultant. The Airport has 
traditionally used a safety consultant as an Impartial third party. 

Mr. Dennis Bouey, Deputy Director for Facilities Operations and 
Maintenance, explained that this is a Prop J contract and staff must 
prove to the Controller that this contract is less expensive than 
hiring a staff person. 

Commissioner Bernstein asked what the consultant will do. 

Mr. Bouey responded that the contractor will ensure compliance with 
CAL OSHA's rules and regulations as well as other health and safety 
policies mandated by State law, set up a program to try and reduce 
workers comp claims, and set up a hazardous materials program at the 
Airport that meets State law. 

Commissioner Bernstein asked why the traffic consultant's contract is 
for $5,000 and the safety consultant's contract is for $58,000. 

Mr. Turpen responded that the traffic consultant will be hired for 
one week; the safety consultant contract runs for one year. 



The following items were unanimously adopted. 

3. Tenant Improvement: 

Delta Airlines - Facility at Plot 12 - T-3247 
$1,800,000 - No Cost to City 

No. 87-0112 



4. Tenant Improvement: 

American Airlines - North Terminal Ticket Counter, Offices, and Gate 
Area Remodel - T-3272 - $400,000 - No Cost to City 

No. 87-0113 



Minutes, June 2, 1987, Page 8 



G. CONSENT CALENDAR OF ROUTINE ADMINISTRATIVE MATTERS: 

The following items were unanimously adopted. 

5. Retirement Resolution: 
Thomas Mai im 

No. 87-0114 



Retirement Resolution: 
Guil lermo Ortiz 

No. 87-0115 



Type II Modification for Contract 1410EF, South Terminal Phase II 

No. 87-0116 Contract modification to provide 

additional work for unforeseen 
conditions and deficiencies in the 
plans and specifications. - $30,291.00 



8. Airport Development Aid Program (ADAP No. 4) 
Amendment No. 1 to Grant Agreement 

No. 87-0117 Resolution accepting Amendment No. 1 

to ADAP No. 4 Grant Agreement and 
authorizing the Director to execute 
said Amendment. 



H. CORRESPONDENCE: 

There was no discussion by the Commission. 

* * * 

J. ADJOURNMENT TO GO INTO CLOSED SESSION: 

There being no further calendared business before the Commission the 
meeting adjourned at 9:42 AM to go into closed session. 



JeA/i Caramattl 
Commission Secretary 



Minutes, June 2, 1987, Page 9 



% SAN FRANCISCO 
AIRPORTS COMMISSION 




DOCUMENTS DEPJ. 

AUG 5 

SAN FRANCISCO 
PUBLIC LIBRARV 



MINUTES 



JUNE 16, 1987 



DIANNE FEINSTEIN, MAYOR 

COMMISSIONERS 

MORRIS BERNSTEIN 

President 

J. EOWARO FLEISHELL 

Vice-President 

DR. Z.L. GOOSBY 

ATHENA TSOUGARAKIS 

DON RICHARDS STEPHENS 



LOUIS A.TURPECM 

Director of Airports 



San Francisco International Airport 
San Francisco, California 94128 



Index 

of the Minutes 

Airports Commission 

June 16, 1987 



CALENDAR AGENDA RESOLUTION 

SECTION ITEM TITLE NUMBER PAGE 



A. CALL TO ORDER: 3 

B. ROLL CALL: 3 

C. ADOPTION OF MINUTES: 

Regular meetings of: 

April 21, 1987 and, 87-0120 3 

May 19, 1987 87-0121 3 

D. ANNOUNCEMENT BY SECRETARY: 3 

E. DIRECTOR'S REPORTS: 

1. Airport Van Service Agreement 4 

2. Status of Public Works Committee 
Hearing Regarding Noise - Oral 

Report 4-5 

3. Boarding Area 'E' Principal 

Concession - Oral Report 5 

4. Airport Master Plan - Working 

Paper 'A' 5-6 

F. ITEMS INITIATED BY COMMISSIONERS: 

Coblentz Court 6 

G. PENDING LEGISLATION: 

5. Resolution Supporting Board of 
Supervisors Resolution on Aircraft 

Noise, If Amended 87-0122 6-7 



ITEMS RELATING TO ADMINISTRATION, 
OPERATIONS & MAINTENANCE: 

Amend the Airports Commission 

Resolution 87-0091 - 

$468,334.00 87-0123 ', 

$468,334.00 Supplemental 

Appropriation to Add Five Noise 

Monitoring Terminals in San 

Francisco 87-0124 7-i 



8. Resolution Urging Disapproval 
of Proposed Charter Amendment 
Relating to Binding Arbitration 
for Grievances on Routine 

Personnel Policy and Practices 87-0125 8-9 

9. Resolution Approving the 
Schematic Design for Remodeling 
the North Terminal Terrace 

Restaurant 87-0126 9 

10. Resolution Authorizing Relocation 
of South Terminal Flower Operation 
and Approving Design Review of 
Flower Kiosk in West Entrance 

Building 87-0127 9 

11. Award of Contract No. 1656: 
Replacement of Pumps at Industrial 

Waste Pump Station 'C and 'A' 87-0128 9 

12. Resolution Consenting to the 
Election of Mrs. John Mailliard, 
III as Director of San Francisco 

Airport Improvement Corporation 87-0129 10 



I. CONSENT CALENDAR OF ROUTINE 

ADMINISTRATIVE MATTERS: 

13. Declaration of Emergency: 
Electrical Cable Failure 
Feeder 12AM-1 - Contract 

No. 1941 87-0130 10-11 

14. Resolution Approving Sublease 
Amendment - American Airlines and 

Pacific Southwest Airlines 87-0131 10 

15. Resolution Approving Sublease 
between Qantas Airways and UTA 

French Airlines 87-0132 10 

16. Resolution Approving Sublease 
between Trans World Airlines 
and Total Air 

17. Design Review Approval - South 
Terminal Shoeshine Concession 

18. Travel/Training for Airport 
Representatives 

J. CORRESPONDENCE: 11 



L. ADJOURNMENT TO GO INTO CLOSED 

SESSION: 11 



87-0133 . 


10 


87-0134 


10 


87-0135 


10 



Minutes, June 16, 1987, Page 2 



Minutes 

of the 

Airports Commission Meeting 

June 16, 1987 



A. CALL TO ORDER: 

The regular meeting of the Airports Commission was called to order at 
9:03 A.M. in Room 282, City Hall, San Francisco, Ca. 



B. ROLL CALL: 

Present: 



Morris Bernstein, President 

J. Edward Fleishell, Vice President 

Z. L. Goosby 

Athena Tsougarakis 

Don Richards Stephens 

J. Edward Fleishell left the meeting 
at 9:20 AM. 



ADOPTION OF MINUTES: 

The minutes of the following regular meetings were adopted by order of the 
Commission President. 



No. 87-0120 
No. 87-0121 



April 21 , 1987 
May 19, 1987 



ANNOUNCEMENT BY SECRETARY: 



In accordance with Section 54957.1 of 
the Brown Act, Jean Carama'tti , 
Commission Secretary, announced 
unanimous adoption of resolution no. 
87-0118 authorizing the Director to 
hire Jacobs Associates at a cost not 
to exceed $125,000 to serve as an 
independent and impartial third party 
consultant to evaluate the dispute 
between Williams & Burrows and the 
City; and, 87-0119 hiring the law firm 
of Howard, Rice, Nemerovski, Canady, 
Robertson and Falk to handle 
litigation with SF0 Airporter and 
Associated Limousine at the closed 
session of June 2, 1987. 



Minutes, June 16, 1987, Page 3 



DIRECTOR'S REPORTS: 

1. Airport Van Service Agreement 

Report outlining the Airport Van 
Service Agreement Pre-Bid Conference 
results and proposed specifications. 

Mr. Lou Turpen, Airport Director, explained that this is a summary of 
the results of the pre-bid conference on the van service. Staff will 
return in two weeks with a recommended set of bid specifications. 

Commissioner Goosby asked what the objection was in allowing 
additional employees to be hired to handle baggage. 

Mr. Turpen responded that denial was based on the potential for 
solicitation. He explained that if a firm had an employee on the 
curb that employee could solicit passengers away from other ground 
transportation operators on the lower level. He said that it was the 
general consensus of staff that there was merit in the suggestion. 

Commissioner Goosby said that there was some discussion on combining 
the van and bus services and asked who wanted them combined. 

Mr. Turpen responded that the suggestion came from a large bus 
operator and that operator was the only pre-bid conference 
participant who expressed an interest in combining the two services. 

Mr. Turpen said that staff will return at the next meeting with a 
draft set of specifications for the Commission to consider. Members 
of the public can respond at that time to that final set of 
specifications. 



Status of Public Works Committee Hearing Regarding Noise - Oral Report 

Mr. Turpen said that the Public Works Committee of the Board of 
Supervisors has been holding a number of hearings on aircraft noise. 
He said that there will be another hearing this Thursday at which 
time the Committee will consider the resolution contained in the 
Commission's agenda package. That amended version was provided to 
the Commission this morning. The Airports General Counsel has 
reviewed it and Mr. Turpen saw no reason why the Commission could not 
support the content of the resolution. He will be in attendance at 
that Committee meeting and would like to give the Committee a sense 
of the Commission's views. 

Commissioner Goosby said he wished the Board of Supervisors had done 
this at the Commission's request several years ago when the Airport 
was trying to get the FAA to alter its routes. 

Mr. Turpen said it would be appropriate for the Commission to vote on 
this amended resolution so that he might represent the Commission's 
feelings to the Public Works Committee. The Commission will have the 
opportunity to look at it at the next Commission meeting. He said 
that the Committee's action will be reported out to the Board as well 
as the Commission's wishes. 

Commissioner Goosby suggested that Mr. Turpen indicate that the 
Commission agrees with it in principle rather than giving specific 



Minutes, June 16, 1987, Page 4 



approval to this unfinished resolution. 

Commissioner Stephens asked who made the corrections to the 
resolution. 

Mr. Turpen said that he believed they were made by Supervisor Maher. 
He said that he would tell the Committee that the Commission agrees 
in principle with the concept and will pass a formal resolution when 
the final document is available. 

Mr. Turpen said it was his understanding that Supervisor Maher will 
forward a letter to the Commission President soliciting the 
Commission's assistance in this regard, commenting on the 
Commission's new noise regulation and urging the Commission to act in 
that regard. He said he has not yet seen the letter but understands 
that it will be forthcoming after the hearing on Thursday. 

Commissioner Tsougarakis asked if this was favoring San Francisco and 
working against San Mateo County. 

Mr. Turpen responded that he did not believe so. He thought that the 
resolution was balanced and that was one reason why he could 
encourage the Commission's support. He said it addresses noise as a 
general problem as opposed to noise as a specific neighborhood 
problem. He said it has always been the Commission's policy to 
address it on a broad base rather than on a segmented base. 



3. Boarding Area 'E' Principal Concession - Oral Report 

Mr. Turpen said that the Commission instructed staff to suspend the 
bidding process for the Boarding Area 'E' Principal Concessionaire to 
allow the Human Rights Commission an opportunity to reevaluate our 
specifications and hopefully concur with the Commission's basic 
Principal Concession concept. As a result of those instructions he 
prepared a letter to Grant Mickens, attaching the specifications and 
asking for his approval. He said that a deadline date of July 1 was 
established. Should the Airport fail to receive the necessary 
approval from HRC by that date staff will proceed without a set aside 
for MBW/WBE opportunity. If HRC agrees, staff will put out an 
amended set of specifications for a set aside. He said that staff 
has yet to hear from HRC. 

Commissioner Goosby corrected Mr. Turpen and said that while they 
interpret it as a set aside, the Airport does not; we look at 1t as 
MBE/WBE involvement. 

Mr. Turpen agreed with Commissioner Goosby but said that in any 
event, the Airport has not heard from the Human Rights Commission. 
He said that since the deadline falls before the next Commission 
meeting he suggested that if HRC has not forwarded a signed letter to 
the Airport by July 1 staff will proceed as the Commission has 
previously instructed. 



4. Airport Master Plan - Working Paper 'A' 

Mr. Turpen said that the Commission has received copies of the 
Airport Master Plan Working Paper 'A' which is a forecasting 
document. He said that the Commission has individually input 
suggestions and comments regarding this document and would welcome 
any further comments directed to him or Jason Yuen on the Working 



Minutes, June 16, 1987, Page 5 



Paper. The next step in this process would be to make that working 
paper available to Airport tenants, State and Federal agencies and to 
move on to Phase II, which is the development of a conceptual plan. 
That should be before the Commission in August or September and will 
address the hole in the center of the garage and the West of Bayshore 
property, i.e. the options and alternatives. 

Commissioner Stephens asked if this would include a proposal to move 
the rental cars. 

Mr. Turpen said that that issue will not be included in this 
particular phase; it will probably be included in Phase 'B' or 'C. 



ITEMS INITIATED BY COMMISSIONERS: 

Commissioner Bernstein said that he and Mr. Turpen have discussed the 
possibility of naming a piece of land adjacent to PSA on the lower level 
after Bill Coblentz in recognition of his 15 years on the Airports 
Commission. He said the recommendation is to name that area "Coblentz 
Court". 

Mr. Turpen said it was a triangular piece of land located on the 
right-hand side of the entrance to the lower level where the roadway 
swings in front of PSA at Boarding Area 'A'. He said that it's a small 
court with benches and the area will be enhanced with plants. 

Mr. Turpen said that staff will take photos and present them to the 
Commission at the next meeting along with a formal presentation. 

Commissioner Stephens asked if there is a precedent for this. 

Mr. Turpen responded that Bill McDonnell, one of the first Airports 
Commissioners, has an Airport road named after him. 

Commissioner Goosby explained that Commissioners can submit names of 
individuals noted in the aviation industry for similar commemoration. 



G. PENDING LEGISLATION: 

The following item was unanimously adopted. 

5. Resolution Supporting Board of Supervisors Resolution on Aircraft 
Noise, If Amended 

No. 87-0122 

Mr. Turpen said that the resolution before the Commission concerning 
aircraft noise was introduced by Supervisor Walker. He said that 
there are two suggested amendments, clearly spelled out in the 
resolution, both of which will make the resolution more accurate. 
The first relates to flight volume and flight activity; the other 
relates to the Roundtable as the appropriate agency. He recommended 
endorsement of this resolution. 

Mr. Turpen told the Commission that Supervisors Nelder and Gonzalez 
have also introduced legislation regarding aircraft noise. He said 

Minutes, June 16, 1987, Page 6 



that Supervisor Walker's resolution, if amended as suggested, and 
Supervisor Maher's resolution are consistent as they relate to the 
Airport's program. He said that staff would very much like to take a 
look at Supervisor Nelder's resolution and return to the Commission 
with a reaction to them. 

Mr. Turpen explained that the resolution proposed by Supervisor 
Nelder asks the City Attorney to prepare legislation, as strong as is 
permitted under State and Federal law, to "ask the FAA to reroute 
airplane traffic to the greatest extent possible so that San 
Francisco can enjoy the advantage provided by geographic definition", 
and "reroute traffic over water to completely bypass residential 
areas, if possible, as well as asking the FAA to release to San 
Francisco the noise and flight monitoring records for SFO for the 
last two years so the public can evaluate recent flight paths." 

Mr. Turpen said that Supervisor Gonzalez's resolution recommends 
establishing a committee consisting of the Departments of Public 
Works, Public Health, Airport, Police and a number of other agencies 
to meet and discuss this problem and make recommendations to the 
Board of Supervisors. He explained that this would be a San 
Francisco version of the Roundtable. 

Mr. Turpen said that staff will make a recommendation that will make 
all of the resolutions consistent with one another as well as 
consistent with the Commission's long standing noise mitigation 
effort. He asked that the Commission adopt a resolution supporting 
Supervisor Walker's legislation with the proposed changes. 



H. ITEMS RELATING TO ADMINISTRATION, OPERATIONS & MAINTENANCE: 

Items 6 and 7 were called together and unanimously adopted. 
Commissioner Flei shell left the meeting at the call of Items 6 and 7. 

6. Amend the Airports Commission Resolution 87-0091 - $468,334.00 

No. 87-0123 Amend the "Intermediate Term Program' 

Increase Noise Monitoring in San 
Franci sco , Airports Commission 
Resolution 87-0091, dated May 19, 
1987, from four to five noise 
monitoring terminals each with a 
positive aircraft ID capability. 
($468,334.00). 



$468,334.00 Supplemental Appropriation to Add Five Noise Monitoring 
Terminals in San Francisco 

No. 87-0124 Resolution authorizing request to fund 

five noise monitoring terminals in San 
Francisco, consistent with the 
requested modification to the 
Airport's Noise Monitoring Plan. 

Mr. Turpen explained that this is an extension of a previous 
Commission action. He said that the Board of Supervisor's Public 
Works Committee asked that a fifth monitor be included. 



Minutes, June 16, 1987, Page 7 



Mr. Turpen explained that the noise monitor will record aircraft 
noise events, determine the level of noise in the monitoring area, 
allow staff to project the noise in a larger area by virtue of 
computer applications, and identify the aircraft generating the noise 
event. The monitors can be set at certain trigger levels so that 
they will automatically trigger and quiry aircraft that are noisy. 
He said that they will not reduce noise; they are simply a vehicle 
for establishing a data base so the Airport can do a better job of 
addressing the noise issue. He said that presently if an aircraft 
flies over San Francisco staff has no way of knowing whether that 
aircraft originated from Oakland, San Francisco, Alameda or another 
location. 

Commissioner Tsougarakis told the Commission that following a recent 
meeting on noise in Visitacion Valley, she and several attendees were 
standing outside the building when a plane flew over head. Several 
residents complained that the plane was too low; an FAA official 
argued that the plane was 3000 feet over head. She said that without 
the monitors it cannot be determined who was right and who was wrong. 

Commissioner Bernstein felt that it was too much money to spend. He 
said that when the Airport was closed recently noise complaints were 
still received. 

Mr. Turpen said that in one area of the City there are a lot of 
overflights from naval aircraft, having nothing to do with commercial 
aviation. The Airport is receiving calls on those aircraft as well. 

Mr. Turpen said that objectivity must be introduced into the 
situation and the noise monitors will give the Airport that degree of 
objectivity in determining the extent and magnitude of the problem, 
if there is one. He said that a lot more money can be spent over 
time in trying to deal with perceptions without any data. 

Commissioner Goosby said that the Board of Supervisors and the Mayor 
were told that this is a part of the Airport's projected program 
which was planned some time ago. It is not the result of criticism 
and he did not want the Board of Supervisors to think that the 
Airport is responding to their inquiries. 

Commissioner Tsougarakis said that the FAA has changed its plans 
since the Airport's original monitoring program was established, so 
doing this is a valid off-shoot of the existing monitoring program. 



The following items were unanimously adopted. 

8. Resolution Urging Disapproval of Proposed Charter Amendment Relating 
to Binding Arbitration for Grievances on Routing Personnel Policy and 
Practices. 

No. 87-0125 

Mr. Turpen explained that this item opposes the proposed Charter 
Amendment. He explained that this was one of the things the unions 
sought but eventually abandoned during our meet and confer sessions. 
Now, after those sessions have been concluded, the unions are coming 
through the back door to get back what they withdrew. He said it 
violates the good faith of meet and confer and he did not think this 
was appropriate. He recommended that the Commission oppose the 
amendment. He further recommended that if this matter goes forward 
that the Commission instruct staff not to sign any MOU's resulting 
from these negotiations as we are not obligated to do so. He said 



Minutes, June 16, 1987, Page 8 



that Jim Ilnicki, the Airport's Departmental Personnel Officer, can 
address any questions the Commisison might have. 

Mr. Ilnicki told the Commission that some departments of the PUC have 
grievances on some of the matters covered by this Charter. 

Commissioner Goosby said that a lot of departments file grievances 
but they aren't subject to binding arbitration. 

Mr. Ilnicki said that was correct. The Airport currently has binding 
arbitration for certain matters that are under the jurisdiction of 
the Board of Supervisors. He said that things that are traditionally 
under the jurisdiction of departments are not subject to binding 
arbitration but would be under this Charter proposal. Things as 
simple as a manager wanting to reassign a clerk from one location of 
the Airport to another will be grievable and subject to binding 
arbitration under this amendment. 

Mr. Turpen said that the Airport will end up spending thousands of 
hours and hundreds of thousands of dollars dealing with these issues. 
He said that the Airport is one of the more aggressive departments in 
personnel administration in the City but if this amendment goes 
through no department will want to get involved in the extended 
time-consuming administrative hastle it will create. It will become 
a tool to insure that no disciplinary action takes place. 

Mr. Turpen said that the Mayor has instructed all City department 
heads to present similar resolutions opposing this Charter amendment 
to their Commissions. 

Commissioner Goosby felt that if this amendment ever reaches the 
ballot the voters of San Francisco will turn it down. 



9. Resolution Approving the Schematic Design for Remodeling the North 
Terminal Terrance Restaurant 

No. 87-0126 



10. Resolution Authorizing Relocation of South Terminal Flower Operation 
and Approving Design Review of Flower Kiosk in West Entrance Building. 

No. 87-0127 Resolution authorizing South Terminal 

Principal Concessionaire, Host, to 
relocate its flower operation by 
installing a flower kiosk in the West 
Entrance Bui lding. 

Mr. Tupren told the Commission that someone was supposed to be 
present from Host to show the Commission renderings. He said he 
could get them to the Commission. 

Commissioner Stephens said he trusted Mr. Turpen. 



11. Award of Contract No. 1656: 

Replacement of Pumps at Industrial Waste Pump Station 'C and 'A' 

No. 87-0128 Resolution awarding Contract No. 1656 

to Lim and Associates in the amount of 
$115,800.00 

Minutes, June 16, 1987, Page 9 



12. Resolution Consenting to the Election of Mrs. John Mai 1 1 i ard , III as 
Director of San Francisco Airport Improvement Corporation 

No. 87-0129 



I. CONSENT CALENDAR OF ROUTINE ADMINISTRATIVE MATTERS: 

Items 14 thrugh 18 were called and unanimously adopted. Item 13 was moved 
to the end of the Consent Calendar and unanimously adopted. 

14. Resolution Approving Sublease Amendment - American Airlines and 
Pacific Southwest Airlines 

No. 87-0131 Resolution approving Amendment No. 3 

to agreement of sublease between 
American Airlines and Pacific South- 
west Airlines for a portion of Plot 40. 



15. Resolution Approving Sublease between Qantas Airways and UTA French 
Airl ines 

No. 87-0132 Resolution approving the sublease of 

International Terminal office space 
between Qantas Airways and UTA French 
Airl ines. 



16. Resolution Approving Sublease between Trans World Airlines and Total 
Air 

No. 87-0133 Resolution approving the sublease of 

office space between Trans World 
Airlines and Total Air on Airport Plot 
3. 



17. Design Review Approval - South Terminal Shoeshine Concession 

No. 87-0134 Resolution approving the schematic 

designs of the new South Terminal 
Shoeshine Concession Stands for 
Boarding Areas 'A' and 'B'. 



18. Travel/Training for Airport Representatives 
No. 87-0135 

13. Declaration of Emergency: 

Electrical Cable Failure - Feeder 12AM-1 
Contract No. 1941 

No. 87-0130 Resolution ratifying action of the 

Minutes, June 16, 1987, Page 10 



President of the Commission in 
declaring an emergency in electrical 
cable failure at North Field Area 
serving Tank Farms, Water Quality 
Control Plant, S.F. City College, and 
directing the Director of Airports to 
effect the necessary repairs. 

Mr. Turpen explained that the power cable went out and staff 
responded to it. An emergency was declared and Chevron brought up a 
primary power standby generator. He said that it should easily run 
for a year but failed after a few weeks. He asked Mr. Bouey how much 
cable was replaced. 

Mr. Dennis Bouey, Deputy Director, Facilities Operations & 
Maintenance, told the Commission that 6000 feet of cable was replaced. 

Mr. Turpen said that when Chevron's generator failed they did not 
have a back-up so the Airport provided one. 

Commissioner Stephens asked that the item be put over explaining that 
Commissioner Flei shell had some comments. 

Mr. Turpen asked the Commission to pass the item as it is a declara- 
tion of emergency and he will place it on the next calendar for 
discussion. 

Commissioner Stephens said that would be fine. 

Commissioner Bernstein asked Mr. Turpen if he had seen the letter 
from Standard outlining the problem. 

Mr. Turpen said he did. He said that there is obviously a suggestion 
that Airport staff did not respond appropriately. Staff will welcome 
the opportunity at the next Commission meeting to set the record 
straight. 

Commissioner Stephens asked if staff wanted to add anything. 

Mr. Bouey said he would reserve his comments until the next meeting. 



J. CORRESPONDENCE: 

There was no discussion by the Commission. 

* * * 

L. ADJOURNMENT TO GO INTO CLOSED SESSION: 

There being no further calendared business before the Commission the 
meeting adjourned at 9:40 AM to go into closed session. 




JeAfi Caramatti 
Commission Secretary 



Minutes, June 16, 1987, Page 11 



At 



SAN FRANCISCO 
AIRPORTS COMMISSION 




MINUTES 



DOCUMENTS Dui-T , 

SEP 9 1287 

SAN FKANOioOO! 
Pl.RUlC I.IBPARV 



JULY 21, 1987 



DIANNE FEINSTEIN, MAYOR 

COMMISSIONERS 

MORRIS BERNSTEIN 

President 

J. EOWARO FLEISHELL 

Vice-President 

OR. Z.L. GOOSBY 

ATHENA TSOUGARAKIS 

DON RICHARDS STEPHENS 

LOUIS A.TURPEIM 

Director of Airports 



San Francisco International Airport 
San Francisco, California 94128 



Index 

of the Minutes 

Airports Commission 

July 21, 1987 



CALENDAR 


AGENDA 




SECTION 


ITEM 


TITLE 


A. 




CALL TO ORDER 


B. 




ROLL CALL: 


C. 




ADOPTION OF M 



Regular meetings of: 
June 2, 1987 
June 19, 1987 



RESOLUTION 
NUMBER 



87-0138 
87-0139 



PAGE 



D. 
E. 



ANNOUNCEMENT BY SECRETARY: 

SPECIAL ITEM: 

Resolution Naming the Open 
Courtyard in B/A 'D' in 
Honor of William K. Coblentz 



87-0140 



F. 



DIRECTOR'S REPORTS: 

2. Boarding Area 'E' Principal 
Concession - Oral Report 

3. Medical Clinic 

4. Proposed Childcare Center 

5. Host International Lease 
Option 



5-8 

8 

8-9 

9-11 



G. 



ITEMS INITIATED BY COMMISSIONERS: 
Skycaps/Prevailing Wage 



11 



H. 



PENDING LEGISLATION: 

Resolution Opposing Enactment 
of Proposed Amendments to the 
Prevailing Wage Ordinance 



87-0141 



11-13 



ITEMS RELATING TO ADMINISTRATION, 
OPERATIONS & MAINTENANCE: 

Authorization to Conduct Airport 

Van Service Agreement Pre- 

Qualification Process 87-0142 13-34 

Bid Call: Insurance/Business 

Service Center 87-0143 35 

Declaration of Emergency: 

Electrical Cable Failure 

Feeder 12 NAAM-1 Contract 1975 87-0144 35 



CONSENT CALENDAR OF ROUTINE 
ADMINISTRATIVE MATTERS: 

10. Bid Call : Contract No. 1877 
Emergency Pavement Repairs 

(1987-88) 87-0145 35 

11. Bid Call: Contract No. 1977 

Replacement of Cable 12BANA-1 87-0146 35 

12. Renew Howard Friedman's Professional 
Services Contract for Fiscal Year 
1987-88 at No Additional Cost. 
Contract Amendment Extends Term of 

Contract to June 30, 1988 87-0147 35 

13. Type II Modification for Contract 
1410ABCE - South Terminal Complex 
Reconstruction - Phase I 87-0148 35-36 

14. Modification No. 2 to Professional 
Services Agreement - Steve 

Gregory 87-0149 36 

15. Resolution Approving Agreement 
with Littler, Mendelson, Fastiff 

& Tichy - $50,000 37 

16. $85,000 Contract with the Museum 
Society, Fine Arts Museums of San 

Francisco 87-0150' 36 

17. Tenant Improvement: Qantas Airways 
Ticket Counter and Office Alterations 

- T-3286 - No Cost to City 87-0151 36 

18. Tenant Improvementr : U.S. Postal 
Service Loading Docks and Conveyor 
Unloading Area - T-3270 - $250,000 

No Cost to City 87-0152 36 

19. Airport Development Aid Program 
(ADAP No. 11) - Amendment No. 1 

to Grant Agreement 87-0153 36 



Minutes, July 21 , 1987, Page 2 



20. Statistical Adjustment 1986-87 
Joint Use Billings under Lease 

and Use Agreement 87-0154 36-37 

21. Request for Travel/Training 87-0155 37 



K. CORRESPONDENCE: 

Travel /Training to Oshkosh 87-0156 38 

L. CLOSED SESSION: 4 

M. ADJOURNMENT: 38 



Minutes, July 21 , 1987, Page 3 



Minutes 

of the 

Airports Commission Meeting 

July 21, 1987 



CALL TO ORDER: 

The regular meeting of the Airports Commission was called to order at 
9:00 A.M. in Room 282, City Hall, San Francisco, Ca. 



ROLL CALL: 
Present: 



Morris Bernstein, President 

J. Edward Fleishell, Vice President 

Z. L. Goosby 

Athena Tsougarakis 

Don Richards Stephens 

Commissioner Stephens left the meeting 
at 10:30 AM. 

Commissioner Goosby left the meeting 
at 10:55 AM. 



ADOPTION OF MINUTES: 

The minutes of the following regular meetings were adopted by order of the 
Commission President: 



No. 87-0138 
No. 87-0139 



June 2, 1987 
June 19, 1987 



L. CLOSED SESSION: 

The meeting recessed at 9:02 AM to go into closed session and reconvened 
at 9:16 AM. 



0. ANNOUNCEMENT BY SECRETARY: 



In accordance with Section 54957.1 of 
the Brown Act, Jean Caramatti , 
Commission Secretary, announced 
unanimous adoption of resolution no. 
87-0131 authorizing the settlement of 
a claim at the closed session of June 
16, 1987. 



Minutes, July 21 , 1987, Page 4 



E. SPECIAL ITEM: 

The following item was unanimously adopted. 

1. Resolution Naming the Open Courtyard in Boarding Area 'D' in Honor of 
William K. Coblentz 

No. 87-0140 

Mr. Lou Turpen, Director, said that at the June 16 Commission meeting 
the Commission discussed an appropriate way of recognizing the 
contributions of former Airports Commissioner Bill Coblentz. Staff 
has conducted a review of alternative sites and recommends that the 
atrium in Boarding Area 'D' be named in honor of Commissioner 
Coblentz. He said that the accomplishments of Commissioner Coblentz 
need no amplification and he is pleased to make the recommendation. 

Commissioner Bernstein thought that this honor was well deserved and 
thanked the Commission of behalf of Commissioner Coblentz. 



F. DIRECTOR'S REPORTS: 

2. Boarding Area 'E' Principal Concession - Oral Report 

Mr. Turpen said that the Commission established July 1 as a deadline 
to receive HRC approval of the Airport's principal concession concept 
for Boarding Area 'E'. Staff is to work with HRC to achieve that 
end. Absent approval by the Human Rights Commission by July 1 that 
concession opportunity was to be bid as a straight concession without 
the principal concession concept. If the HRC approved the principal 
concession concept as structured by the Commission then staff was to 
withdraw the bids and rebid it in an amended format. Permission was 
received from HRC to proceed with the principal concession concept on 
July 1 however that permission was subsequently withdrawn due to 
legal considerations. The choices now remaining are to either bid it 
as a straight concession opportunity as the Commission directed 
staff, absent HRC approval; or, to take a look at breaking the 
concession into smaller increments. This was discussed at the March 
4, 1986 Airport's Commission meeting at which time the Commission 
opted to consolidate it into a single bid simply because some of the 
entities were so small that it was determined that they could not 
financially stand alone. 

Mr. Turpen said that although he has already been given authorization 
to move ahead he wanted to discuss it with the Commission one more 
time. Unless the Commission directs him to the contrary he will 
proceed with a bid for Boarding Area 'E' as a straight concession 
opportunity under the applicable rules of the City. 

Commissioner Stephens asked for an explanation of "straight 
concession opportunity concession." 

Mr. Turpen responded that there were two options. One was the 
principal concession option with a 30 percent space set aside for 
minority/women participation; the other opportunity is without a set 
aside. He explained that the space can either be bid as a block with 
all of the spaces tied together as a single concesssionaire, or, to 

Minutes, July 21 , 1987, Page 5 



break the spaces into three or four smaller independent concession 
opportunities. 

Commissioner Goosby suggested that two could be bid in the normal bid 
procedure and the other two smaller spaces could be bid for small 
business. 

Commissioner Goosby complimented and thanked Ms. Rosales for 
appearing at a meeting with Don Garibaldi. He asked if there could 
be a combination of a small concession with a large concession if 
staff felt there was no viability in that space being bid as four 
small concessions. He said that the other two could be set asides 
for small/local businesses. 

Commissioner Stephens said that his preference was, to the extent 
that the bidders were viable, to allow as many local businesses and 
smaller businesses to have an opportunity to bid. He did not feel 
they should be subsidized, nor should they be precluded because the 
space was 50,000 feet. He said that he did not think it made any 
difference but if by definition of the bidding procedure it's limited 
to Host and a local restaurant wants an opportunity to bid, and they 
are willing to pay the same rent with the same terms and are able to 
provide a financial statement indicating they are able to perform the 
bid, he would rather see them have the opportunity to bid and not be 
precluded. 

Mr. Turpen said that the thinking was that at 3,500 square feet for 
all the entities combined it was small enough so tnat smaller 
businesses could actually bid. He said that this was unlike the 
25,000 square feet in the International Terminal where the cost of 
fixturization alone was prohibitive for many people. 

Commissioner Stephens said he did not see anything wrong with bidders 
combining to form a coalition to bid as long as it is not so large 
that it effectively precludes them from the bidding procedure. 

Mr. Turpen responded that staff did not feel that 3,500 square feet 
would preclude anyone. He said that the other concern was that when 
broken up the two smaller spaces were so small that they would not be 
viable. Staff does not want to create a situation where the bidder 
would be doomed to failure. 

Mr. Turpen concluded by saying that the space was small enough that 
an MBE or WBE could effectively compete for it. He said that if the 
the space was broken up it could place the bidder at a financial 
disadvantage. 

Commissioner Fleishell thought staff's position made sense. - 

Mr. Turpen said that if the Commission elects not to change it no 
further action would be required as the Commission has already given 
its authorization to bid as a 3,500 foot space. 

Commissioner Bernstein said that under the provisions of the 
principal concessionaire concept the subtenants must be assisted in 
the conduct of their business. The Airport has been successful in 
asking the major lessee to sublet to small businesses. He said he 
would be in favor of having local/small businesses provided the 
Airport helps them by having a merchandise man show them correct 
inventory procedures, etc. He said that what a concession does 
reflects on the Airport. 

Commissioner Stephens said he understood but did not feel it appro- 
priate for the Airport to go into the business of retail training. 



Minutes, July 21 , 1987, Page 6 



He asked Commissioner Goosby what he thought about staff's position. 

Commissioner Goosby responded that he could not judge the viability 
of those spaces standing alone and would defer to staff's judgment. 
He said this was an enlightened policy and suggested staff brief 
Commissioner Stephens on it. He explained that the HRC ordinance 
says that a department can only resort to a set aside in cases where 
all other means have been explored in trying to bring about an 
integration of minority and women into the business. In this 
instance HRC did not feel all avenues were exhausted so approval was 
not been given. 

Commissioner Tsougarakis said that the law isn't intended to help 
guarantee failure for a tenant. If a small business does not have a 
chance to succeed then the other approach is best. 

Mr. Turpen said that staff wants to continue with this program and 
will try and work with HRC in resolving this problem. Boarding Area 
'E' has been bounced around for over a year and he would like to move 
ahead with it while continuing to work with HRC to sort this out, or, 
move for a legislative change, or whatever needs to be done to allow 
the program to move forward. 

Commissioner Bernstein said that there must be one leader. At the 
height of the Airport's business there were 2000 concessionaires. 
There must be a tough retailer who, in turn, will sublease and watch 
the operation. 

Commissioner Bernstein asked Mr. S. Brian Williams, Construction 
Management Systems, if he wished to address the Commission. 

Mr. Williams said that he is involved with a group of people who are 
very interested in operating a business at the Airport, particularly 
in areas in which Host is currently involved. He said that he 
appreciates the Commission's consideration of this item but felt that 
the Commission should examine Host as a master concessionaire. He 
was concerned that the small business gets squeezed and their profits 
are reduced by virtue of the way the contracts are overseen and 
managed by Host. He urged the Commission to examine the financials, 
Host and the subtenant to ensure their profit margins are consistent 
with other Airport concessionaires. He feared that Host was taking 
unfair advantage of the smaller concessionaire. 

Mr. Williams said that the people he represents can, if not compete 
with Host, play with them at a similar level. 

Commissioner Bernstein asked Mr. Williams if he could cite instances 
of a concessionaire being treated unfairly. 

Mr. Williams said that he could probably document it but did not feel 
it would be constructive to do so. He said he would withdraw the 
comment and instead say that he has difficulty believing that Host 
would train and nurture concessionaires. 

Commissioner Goosby said Mr. Williams was off the subject as he was 
addressing Item 5. 

Mr. Williams wanted to be sure that there is an opportunity for 
minority and women-owned businesses. 

Commissioner Bernstein said that everyone will be treated as they 
have been in the past. 

Commissioner Tsougarakis said it would be constructive if Mr. 
Minutes, July 21 , 1987, Page 7 



Williams expressed his concerns in writing. 

Commissioner Goosby said that when Item 5 is reached he is proposing 
that a conference be held with the Chinese Chamber of Commerce, the 
Black Chamber of Commerce, the Hispanic business community to discuss 
the advantages and disadvantages of the concept before a pre-bid 
conference is held. 



Medical Clinic 

Discussion and recommendation on new 
Medical Clinic lease. 

Mr. Turpen said the lease for the Medical Clinic will expire on June 
30, 1988. This item provides the Commission with some background and 
thoughts on how to proceed. He recommended moving ahead with a 
request for proposal and asked that staff be allowed to develop the 
RFP and submit it to the Commission within the next 30-45 days. The 
Commission can then offer its comments. 



Proposed Child Care Center 

Mr. Turpen said that the San Mateo Labor Council and the Child Care 
Coordinating Council of San Mateo County have entered into a working 
partnership to place a child care facility at or near the Airport for 
Airport employees. There are 30,000 employees at the Airport and 
there is a need for such a facility. It was suggested that a portion 
of land on the West of Bayshore property might be appropriate so he 
accompanied members of the San Mateo Labor Council to that area and 
examined potential sites. 

Mr. Turpen asked the Commission's authorization for staff to do a 
more detailed study on the Airport's involvement with this project. 
There are a number of outstanding issues that must be addressed so 
staff would be premature in coming to the Commission with a recommen- 
dation on a defined area. He said he needed to know if the 
Commission would respond favorably to an arrangement, if one could be 
worked out, within the legal, physical and operational constraints of 
the Airport. 

Mr. Art Pulaski, San Mateo Labor Council, said that in many ways it 
is the first of its kind in the country. United Way has done a 
number of studies and they are working with United Way on this 
project. All of the studies suggest that child care is one- of the 
most crucial issues affecting both the community and most particu- 
larly the employees at the Airport. This partnership spans a cross- 
section from United Way to the public sector. The San Mateo County 
Board of Supervisors has expressed a great deal of interest and there 
is also involvement by labor and management as well as involvement by 
the Director of the Airport Hilton Hotel and early conversations with 
management at United Airlines. Both the San Mateo Board of 
Supervisors and United Way have commissioned start up funds to help 
make this project a success. Further funding for the project is now 
being worked on. 

Mr. Pulaski said that the Four Seas, serving as the administrative 
directorship, are the experts in the child care field and are 
familiar with the details for initiating such a project. He thanked 
the Commission for its interest and encouraged its conceptual 
support. Mr. Pulaski then introduced Mary Petsche. 



Minutes, July 21 , 1987, Page 8 



Ms. Mary Petsche, Director, Child Care Coordinating Council of San 
Mateo County, told the Commission that the two organizations have 
been working in partnership for some time to try to develop a program 
for the unique needs of Airport employee parents. She said that 
there are few work sites like the Airport in the Bay Area or through- 
out the country. Child care on a 24-hour, seven-day-a-week, 365 day- 
a-year basis is what is needed for Airport workers. They have begun 
to address those needs by establishing a licensed family day care 
network beginning near the Airport and extending out. 

Commissioner Goosby asked if they will pay rent on the facility. 

Mr. Turpen responded that staff was looking at that. 

Commissioner Goosby reminded Mr. Turpen that there is a master plan 
that the Airport is looking at as well as the experience with the 
downtown terminal and Mr. Lenoudakis's claim that he has a commitment 
from the Airport to maintain it. He said that he is in favor of 
child care centers but it must also be kept in mind that those 
parents are also concerned about exposing their children to work as 
they grow older. He hoped that those parents, in talking to their 
union officials, should get them to approve the Airport's efforts to 
offer high school students in San Mateo County and San Francisco 
County an opportunity to observe the various work stations at the 
Airport through an intern program. This program will afford them the 
opportunity to investigate the various job opportunities in the 
aviation field. He hoped the parents would direct their union 
officials to join in a subcommittee with the Commission President and 
himself to discuss the union's objections and why they have thwarted 
the Commission's efforts in this project. 

Ms. Terry Mullen, Chairperson, Airport Labor Coalition Child Care 
Project and United Airlines flight attendent, said it is very 
difficult to find child care after 5:00 PM and before 8:00 AM. She 
said that as a flight attendent who is out of town for a day or two 
or even three at a time, it is very difficult to find overnight 
childcare. This child care project is much needed for Airport 
employees and they would appreciate the Commission's support at this 
time. 

Mr. Turpen told the Commission that there are severe legal, physical 
and operational constraints and restrictions on Airport property. If 
the Commission agrees staff will try to overcome those constraints 
and find a parcel of land that would both satisfy the Commission's 
concerns and the Labor Coalition's efforts. If that can be done 
staff will return to the Commission with a detailed report. 

Mr. Walter Johnson, San Francisco Labor Council, said that one of the 
most important efforts in the world today is in childcare. He 
complimented the Commission, the San Mateo Labor Council and United 
Way for recognizing the need for childcare. He said that this effort 
sends out a message to employees with children that there are those 
who care. He thanked the Commission for its open-mindedness and if a 
subcommittee is establised he will be happy to work with it. 



5. Host International Lease Option 

Report outlining conditions for the 
exercise of Host International's Food 
and Beverage lease option. 

Mr. Turpen said that this concerns extensive and extended conversa- 
Minutes, July 21 , 1987, Page 9 



tions with Host concerning their exclusive for food and beverage at 
the Airport. Host has a 10-year lease extension which is solely in 
the Airports Commission and will commence in 1994 when their lease 
expires. From the Commission's perspective there are two issues, one 
is the opportunity to create 30 percent of the existing food and 
beverage space opportunity for MBEs/WBEs. The second is to create a 
market basket for those food items and tie them to a reasonable 
number of outside facilities which would be more representative than 
the current rates being charged. After much negotiation Host has 
agreed in pinciple to the Airport's suggestions that 30 percent of 
the space be set aside and that there be a market basket in exchange 
for the 10-year lease extension. 

Commissioner Stephens asked why this was being discussed since the 
lease does not expire until 1994. 

Mr. Turpen responded that the Airport has been presented with an 
opportunity to gain some concessions from Host in exchange for the 
lease extension. He said that the intent is to get that agreement 
with Host now and it will run from the remainder of this term into 
the extended term. 

Commissioner Fleishell asked about the minority participation. 

Mr. Turpen responded that the minority participation would be phased 
in over three time periods; 10 percent immediately upon agreement, 10 
percent at another benchmark date, and the last in 1994. Every 
concourse in every terminal has to have something and 30 percent of 
the space must contribute 30 percent of Host revenues. 

Commissioner Stephens said that their lease does not require that 
they sublease 30 percent of their space. Host will commit 20 percent 
now in exchange for early approval of the option. Once the option 
actually starts running in 1994 they will have to commit 30 percent. 

Mr. Turpen said they will also be reducing their prices which will be 
of some magnitude on key items. 

Commissioner Stephens asked if the items enumerated in the passenger 
survey as being most expensive would be reduced. 

Mr. Turpen believed so. 

Commissioner Goosby asked if price fixing was equitable without 
controlling a few other things. He felt that the phaslng-in should 
be negotiable as well. He said that the MBE ordinance talks about 5% 

women. 

Mr. Wong said that the ordinance talks about 30 percent minority and 
10 percent women. 

Commissioner Goosby said that the percentage for women should be 
increased. The minority community is very concerned about this. The 
minority goal should be 30 percent and we are asking for 25 percent. 
It is not the intent of the City ordinance. The Board of Supervisors 
debated this and received input from women's organizations and 
various communities and it should be set in keeping with the City 
ordinance. 

Mr. Turpen said that this is an introduction to this issue. He noted 
that the rent that will be charged to subtenants is exaxtly the same 
rent that Host pays so no increment will be added. 

Commissioner Stephens said that if the price of an ice cream is 
Minutes, July 21 , 1987, Page 10 



reduced to an amount that would make it difficult to achieve a profit 
we don't want Host to turn around and lease the 30 percent minority/ 
women space to the ice cream concession. That would be good business 
for Host but would not be in keeping with the spirit of the ordinance, 

Mr. Turpen said that potential locations have been identified on each 
boarding area and staff should be directed to conduct a conference, 
much like a pre-bid conference, of all interested parties. Staff 
would then return to the Commission with information from that 
conference. 

Commissioner Tsougarakis said that the passenger survey indicates 
that passengers are unhappy with prices. She said that it will be 
quantity that will make the difference with concessions. 

The Commission agreed to proceed with Mr. Turpen's recommendation. 



ITEMS INITIATED BY COMMISSIONERS: 

Commissioner Goosby said that it was his understanding that the Board of 
Supervisors, at its meeting yesterday, passed a resolution requesting that 
the Airport look into the Skycap problem. He asked that staff take a look 
at that resolution. He said that he read Mr. Turpen's response to Mr. 
Francois and thought it was a good one. He asked for a copy of the 
ordinance as well as a copy of the Airport's policy statement. He would 
like a reply sent to the Board of Supervisors. 



H. PENDING LEGISLATION: 

The following item was unanimously adopted. 

6. Resolution Opposing Enactment of Proposed Amendments to the 
Prevailing Wage Ordinance 

No. 87-0141 Resolution indicating Commission's 

opposition to two amendments to the 
Prevailing Wage Ordinance. 

Mr. Turpen said that there is pending legislation on prevailing wage 
that will require Airport to request the Civil Service Commission to 
determine the prevailing wage for personnel services prior to the 
adoption of any resolution inviting bids. It would also require the 
Airport to include with the invitation to bid the wages and benefits 
establised by collective bargaining agreements for contracts which 
are currently being bid. 

Mr. Walter Johnson said that he understood that the Commission has a 
resolution opposing this language. He said that he supported the new 
language and opposed the Commission's resolution. The point being 
that the responsibility for maintaining economic status and to be 
fair to all parties concerned. He said that to just have an open 
season, with people coming into these particular situations whatever 
it may be, is opening the gates to a new working class of people. He 
felt that that was one of the problems in America today. Instead of 
moving up they are going down. We have a responsibility to those who 
have carried on their business in an honorable manner that would 

Minutes, July 21 , 1987, Page 11 



properly compensate employees. Without something like this you then 
are able to start a process that is going to continually go down and 
create a problem not only at the Airport but elsewhere. He urged 
adoption of the language and opposed the Commission's resolution. 

Mr. Turpen said that the Commission has an existing ordinance on 
prevailing wage and that ordinance has not been determined to be 
inadequate. If the Commission does not oppose this legislation it 
would seriously extend the amount of time to bid a contract because 
the prevailing wage would have to be established for all labor 
classes involved in that endeavor. If it is pegged at the wage that 
exists he does not know that we would necessarily be encouraging the 
number of parties interested in bidding. For the City's fiscal 
benefit we must have the widest number of people bidding on Airport 
opportunities, consistent with the law. He said that in all of our 
contracts we require adherence to the City's existing prevailing wage 
ordinance, which, to this date has not proven to be inadequate or 
ineffective, to his knowledge. 

Commissioner Goosby said that the prevailing wage is based on an 
average of a number of Bay Area counties. The specifications read: 
"...require that the Airport include with the invitation to bid the 
wages and benefits established by a collective bargaining agreement." 
He said that that might be just one bargaining agreement between 
Airporter and their union but it may not be the average of the Bay 
Area or Northern California. He did not think that was the intention 
of the City. 

Commissioner Goosby said that the Commission was willing to give 
prospective bidders an advantage in knowing about what they will have 
to pay in terms of prevailing wage. He felt that the Civil Service 
Commission was the agency to handle this but thought that the 
procedure by which they arrive at it has been changed so it does not 
take as long. 

Commissioner Goosby wanted the audience to know that there were 
extenuating circumstances regarding these resolutions that must be 
addressed. 

Commissioner Fleishell asked where the ordinance was in the procedure. 

Mr. Peter Nardoza, Acting Deputy Director, Business and Finance, 
responded that it is pending in the Finance Committee. It was 
originally scheduled for hearing tomorrow but the Committee meeting 
was cancelled. 

Commissioner Fleishell asked that the Commission be kept advised as 

there may be members of the Commission who may wish to appear before 

the Board of Supervisors. He felt that the Finance Committee should 
be made aware of the Commission's position. 

Commissioner Bernstein asked Mr. Steve Leonoudakis if he wished to 
address the Commission. 

Mr. Leonoudakis said that he has lived with the prevailing wage 
ordinance in the operation of two bus services for the Airport for a 
number of years. He reminded the Commission that when it came to 
bidding the shuttle bus contract the Commission did the very thing 
that Supervisor Walker is recommending in the adoption of the amend- 
ment of the prevailing wage ordinance. He said that the Commission 
asked the Civil Service Commission to do a study that showed the 
prevailing wage for shuttle bus drivers. He said that the ordinance 
as drafted is that it is meaningless. The problem occurs when the 
bid is open and you have a substandard bidder paying substandard 



Minutes, July 21 , 1987, Page 12 



wages who has knocked out a loyal provider of over 30 years. The 
draft ordinance now provides that if an employee wants to complain 
that he is not receiving the prevailing wage he can petition the 
appropriate body. He asked what employee would complain to the Civil 
Service Commission; he would lose his job. 

Mr. Leonoudakis said that this amendment once and for all answers the 
question of what is the prevailing wage. He urged the Commission not 
to oppose this ordinance at this time or at the very least he asked 
the Commission wait until the Finance Committee hearings have been 
held and the ordinance is in its final form. 

Commissioner Goosby said that he would like to see an amendment of 
suggested revisions. He also asked that if there were fairness and 
equity to this philosophy why is it restricted to the Airport. 

Commissioner Tsougarakis asked Mr. Johnson if he agreed that making 
it City-wide would be proper. 

Mr. Johnson responded that he was interested in opening up the door. 
He said that he wanted to wait and see where it was going. He hoped 
everyone could keep an open mind and make sure that all bidders were 
protected in the process. 

Commissioner Bernstein asked if this item could be put over. 

Mr. Turpen said that he would asked Mr. Nardoza to check with the 
Finance Committee clerk to find out when the item would appear. He 
asked that the Commission put the vote over until Mr. Nardoza returns 
with that information. 



I. ITEMS RELATING TO ADMINISTRATION, OPERATIONS & MAINTENANCE: 

Items 7-9 were unanimously adopted. The following is a verbatim 
transcript of Item No. 7. 

7. Authorization to Conduct Airport Van Service Agreement 
Pre-Qual if ication Process 

No. 87-0142 Resolution authorizing Director to 

conduct the pre-qual if ication process 
for the Airport Van Service Agreement. 

Mr. Turpen: Let me characterize what this is, sir. This authorizes 
the Airport's staff to conduce he pre-qual if ication process for the 
van serivce agreement. That means to establish a list of persons who 
would be qualified to bid on the van services agreement. That is the 
item before the Airports Commission today. 

Commissioner Goosby: That's all that's before us. Whether to direct 
you to go ahead and get a list of people who are qualified. 

Mr. Turpen: To bid. Yes, that's correct. 

Commissioner Berstein: Why don't we call on those who have asked to 
speak. Mr. Clifford Orloff of the Airport Limousine, Airport 
Connection. 

Minutes, July 21 , 1987, Page 13 



Commissioner Tsougarakis: Mr. President; I would like to remind the 
speakers of the three minute rule. 



Mr. Orloff: I'm urging the Commission to restrict the nature of this 
contract. This contract started with a van service agreement between 
the Airport and San Francisco and the justification for the contract 
was due to upper level roadway congestion. As the contract currently 
reads it is now a general transportation service agreement which 
allows vans to operate between the Airport and San Francisco, 
boarding at the lower level. In addition it allows sales of van, 
limousine, and scheduled bus services to and from any points in the 
Bay Area, from Concord to San Jose. The fact that this is labeled as 
a van service agreement we think has now become a misnomer. We 
haven't seen or heard any justification for the expanded scope of 
this proposed agreement. We urge the Commission to go back to the 
original intent of this contract which is to authorize lower level 
roadway loading and shared-ride van service between the Airport and 
San Francisco only. This contract, as it currently reads, basically 
is a generalized transportation sales booth and lower level roadway 
loading agreement. We think it's gone way beyond the original intent 
of the Commi ssion. 



Commissioner Fleishell: Have you raised this point with Airport 
attorneys for the. . . 



Mr. Orloff: We originally raised the point that the contract 
originally was worded so that the successful bidder would be allowed 
to operate the shared-ride van service between San Francisco and the 
Airport and with the approval of the Director that it would be 
allowed to do a number of other things. . .sel 1 any kinds of transpor- 
tation services and operate to other areas. We objected, during the 
hearing, that that let the Director have total control of the value 
of this contract because if you could operate outside of the City of 
San Francisco that changes the value of the contract. The contract 
was changed to take away the expansion of the scope of operations 
from the Director's approval to make it an option of the contractor 
to provide those services. So, we did make an objection and the 
contract was, instead of restricted back to the original intent, it 
was expanded to leave the option not at the Director's but at the 
operator's discretion. 



Commissioner Fleishell: But that's what you were complaining about. 



Mr. Orloff: We were complaining that this was allowing the operator, 
at the Director's discretion, to do anything and now it basically 
just allows the operator to do anything, not at the Director's 
discretion, and we think that this contract should be a van service 
agreement between the City of San Francisco and San Francisco Airport. 



Commissioner Fleishell: The van service, in your opinion, should be 
restricted to Airport and San Francisco. Should not be allowed to go 
to Marin, should not be allowed to go South. 



Mr. Orloff: And also it should not allow the sale of scheduled 
operations; it should not allow the sale of limousine operations 
which as it currently reads does allow. 



Minutes, July 21 , 1987, Page 14 



Commissioner Fleishell: Is that correct? It allows limousine 
operations? 



Mr. Turpen: From the booth. 



Mr. Jerry Copelan, Property Management: This concern had originally 
been raised as a question of whether those operators that have 
existing services at the Airport, if they were to bid what would 
happen to their existing businesses if they were to be the successful 
bidders. We have worked on this language and I think it's now shown 
in Attachment II, Item 4, is that the operator's, for example Mr. 
Orloff's existing bid to the East Bay would be permitted to continue 
that service however it would be up to the Director's discretion as 
to where the loading zones would be. So he may be required to load 
those passengers with scheduled service to the East Bay, possibly 
upstairs. 



Commissioner Fleishell: I have some questions but I think it 
intrudes into pending litigation and I'd like very much to talk with 
the attorney or somebody on this because it seems to me that we bid 
out a contract and give the exclusive limousine business at the 
Airport. . .the public thinks that anyway... to one company. They now 
have sued us and now we have another contract coming through that 
would. ..if his statements are correct. . .permit additional limousine 
business which may well violate some problems in an earlier agree- 
ment. It just seems to me... I thought a month ago we were going to 
hire a consultant to make sure of all the things we're doing and 
coordinate. What ever happened to that? It was six weeks ago. We 
were all asked to supply names. 



Mr. Turpen: Are the proposals in, Sheldon? 

Mr. Sheldon Fein, Landside Operations: We have the proposals 

Mr. Turpen: As of Friday, I believe. 



Mr. Fein: We've gone through the City process. We went out with 
proposals. We received proposals from eight different companies. 
We're in the process now of evaluating the lengthy proposals of each 
one. We should have them in two weeks. 



Commissioner Bernstein: When? It's now about six weeks, isn't it. 
Commissioner Tsougarakis: He says he's gone through the City process 
Mr. Turpen: We're obligated to use the City process, sir. 



Commissioner Tsougarakis: He's gone through the City process in 
order to come up to the point that they are right now. 



Commissioner Fleishell: What is the City process? 



Minutes, July 21 , 1987, Page 15 



*r 



Commissioner Tsougarakis: A long one. That's the problem. 



Mr. Fein: We had to go through the detailed plans and specs; we had 
to send copies of it to the City Attorney, down to City Hall to 
various people; we had the HRC review them; we've got insurance 
requirements; we've got minority requirements and so forth for this 
type of contract; we've written the specs, we've sent them out to the 
companies; they've had two or three weeks to respond to it. We've 
gotten written proposals from eight companies. We went through 14 
companies in addition to the names that we had gotten off of the list 
from HRC, different companies who could do that type of work at the 
Airport. On Friday we received all the proposals. Right now we have 
a group of three people evaluating and rating them. We will come to 
the Commission with the top three proposals for them to take 
appropriate action. 



Commissioner Tsougarakis: We're straying a little bit afield from 
the argument. 



Commissioner Bernstein: I don't understand it but I guess you do, 
don' t you. 



Mr. Orloff: So in conclusion we would like to urge the Commission 
to. . . 



Commissioner Bernstein: Could you give me that in chronological 
order, on paper, and would you mind if I made some inquiries. I 
wouldn't louse up anything but I... 



Commissioner Tsougarakis: You probably would. 

Commissioner Fleishell: Thank you, very much. Another speaker? 

Commissioner Tsougarakis: Who's the next speaker? 



Commissioner Bernstein: Thank you, very much. I'm not certain I 
understood any of it. Robert Jacobs. I have a luncheon date, Bob. 
Make it short. 

Mr. Jacobs: It will be short and to the point. I represent the San 
Francisco Ground Transportation Coalition. A coalition of 
limousines, small van operators and companies representing the 
majority of the taxicabs. I have one point that I wish to stress. 
In your bid proposal under Attachment I there's an item that says 
about the vans unloading at designated locations downstairs on the 
lower level. We feel that coincidental ly at this time were the Need 
and Necessity hearings at the Police Commission. The Police 
Commission had eight or 10... it was over a dozen points. . .that they 
were asking for, including no dead-heading to the Airport, etc. But 
one of the points was share-ride concept. Now, under the share-ride 
concept... we have been working with a committee from the Police 
Commission, representing the Police Commission, and we have reached 
an agreement on not all of the points but most of them. One that 
we've reached agreement on is the share-ride concept which has to go 



Minutes, July 21 , 1987, Page 16 



through the approval process and the Commission, and, I imagine the 
Board of Supervisors. If there's a share-ride concept from San 
Francisco to the Airport we hope that there will be a share-ride 
concept from the Airport back to San Francisco. If that is the case 
with 1600, 1700 cab drivers or maybe a couple of thousand cabdrivers 
and the 600 odd cabs, that would have a dramatic effect on the need 
and the expansion of van service. And, part of our proposal was that 
a line in each terminal or a queue line be set up whereas the queue 
line for cab passengers be established in each terminal area along 
with an equitable system for pulling the cabs for the purpose of 
share-ride. Now, I feel that the share-ride concept will come in and 
the share-ride concept will have a serious effect on van service; an 
effect that the cabs can load three people, two people or four, 
luggage permitting and at competitive rates. We've just received 
notice yesterday relative to what was coming up in this meeting and I 
think that the Commission should consider this thing that will have a 
serious effect on the operation at the Airport with the vans. In 
addition to that, as you well know, we employ in our industry over 
4500 people, from cab drivers to garage men, dispatchers and so forth 
and the majority, not the minority, are of minority descent and 
anything that happens to the Airport has a direct bearing on their 
ability to make a living. Thank you. 



Commissioner Flei shell: Could I ask one question? Where are these 
regulations before the Police Commission now? 



Mr. Jacobs: They gave us a list of over a dozen; they set up a 
Committee of two people, one from the Mayor's Office, one from the 
Commission. They've met with us on two occasions. I was going down 
after this was over to see if I can make an arrangement for another 
meeting. In practicality what we did was negotiate. We said, well, 
we'll go along with these items and let's say we're not going to 
approve two or three items and we'll come back and try to get to some 
agreement on that. I feel that four weeks to eight weeks that it 
will at least be finalized to where it will come before perhaps the 
Committee of the Board of Supervisors. 



Commissioner Fleishell: The Police Commission first, I believe. 
Mr. Jacobs: Yes, the Police Commission first. 



Commissioner Fleishell: I ask because it seems to me Mr. Turpen that 
since, as this speaker says, and as our earlier conversation 
indicates, what the Police Commission does has a material effect on 
the Airport and we ought to be participating. The no dead-head, for 
instance, has a material effect on the Airport. 



Mr. Turpen: Yes, sir. But there is some confusion here. I think 
that what they're addressing is dead-heading from downtown, is it not? 



Commissioner Fleishell: That's right. 



Mr. Turpen: Excuse me. Not dead-heading. I'm talking about dead- 
heading and share-ride. I think there's been some confusion here 
this morning on whether or not we allow share-ride at the Airport, 
which we have for a lot of years, from the Airport to downtown. 



Minutes, July 21 , 1987, Page 17 



Commissioner Goosby: If the people initiate it themselves. 



Mr. Turpen: If the people initiate it themselves, right. I think 
the Commission understands clearly the amount of curbspace we have at 
the Airport wouldn't allow the forming of groups out there on the 
center island in the taxi zones. 



Commissioner Bernstein: Realistically we know they don't initiate 
it. It' s a phrase. 



Mr. Turpen: Well, but I think we've also offered booths to the taxi 
companies. Let me ask Sheldon to address it because this has come up 
four times with a lot of confusion on whether or not the Airport 
allows share rides from the Airport to downtown. I think that's one 
issue. The other issue is whether or not downtown allows share rides 
from downtown to the Airport. That's an entirely different issue and 
I don't know that that issue necessarily is an issue that we of the 
Commission should or wants to get involved in. We're talking about 
Airport originating business as opposed to downtown originating 
business. 



Commissioner Fleishell: I think if you don't get involved you're in 
a situation where many of the things the Airports Commission wants to 
do are going to be materially effected by the Police Commission. 

Let me just, if I may, get off the subject a little. I talked to 
Duke Briscoe about a practice that seems to have grown up of cabs at 
the Airport who get in a short line and they're taking a passenger to 
Mi librae, they get on 280 and go 90 mph. I have two letters from the 
President of the State Bar of California saying he refuses to ride 
the thing any more and we should do something about it. A month ago 
I talked to Duke. I have not heard about it. The former Chief of 
Police, Con Murphy, yesterday suggested it might be a good idea to 
give up the whole concept of short ride. You'll end up getting rid 
of a lot of people who hang around the Airport and the ordinary 
attrition. . .1 get a short ride, I get a long ride. It's something we 
ought to be looking at and that's why it's important to know what the 
Police Commission's doing so that we have a uniform system. When a 
cab has a license issued by the Police Commission there's nothing we 
can do to broaden that license that I'm aware of. In any event, I 
just want us to know what's going on, that's all. 



Mr. Turpen: I think there are two things, sir, with respect -to 
this. The effort being conducted by the Police Commission is really 
trying to increase the number of cabs that serve downtown. With 
respect to the short-haul issue, the Commission has labored over 
that, as you know, repeatedly over the past several years as to 
whether or not to eliminate the short-haul and deal with the attend- 
ant refusal to convey problem, which we are prepared to do, or, to 
continue with the short-haul and solicit the Highway Patrol's assist- 
ance, as we have, to control speeding on the State highway system. 
We've done both those things. One, we have called the Highway 
Patrol, we have talked to the Highway Patrol, we've indicated 
problems we have had with cabs speeding and certainly that is within 
their purview. The short-haul, if the Commission wishes, we can 
resurrect again but I think at this point. ..( interrupted by 
Commissioner Fleishell) 



Minutes, July 21 , 1987, Page 18 



Commissioner Fleishell: I didn't want to get off the subject that 
much. I merely wanted to suggest that what the Police Commission 
does on this subject materially effects the overall ground transpor- 
tation plan at the Airport, I think. 



Mr. Turpen: I guess I don't see it that, sir. 
Commissioner Fleishell: Well, if you don't, you don't. 



Mr. Jacobs: That's about all I have to say except that I think that 
a study should be made and perhaps they can call on us to give a 
little input into the study as we see it from our side. 



Commissioner Fleishell: Sure. 
Commissioner Tsougarakis: Be assured. 
Commissioner Fleishell: Thank you. 
Commissioner Tsougarakis: Next speaker, 



Commissioner Bernstein: Lou, are you saying that the Police 
Commission or the Police Department makes a decision that you cannot 
do a certain thing, that it does not effect us. 



Mr. Turpen: It depends on what the decision is. What the Police 
Commission is working on right now, and I've talked to them, I've 
talked to the Chief, I've talked to the people in the Mayor's Office 
who are working on this problem, is they're talking about trying to 
have more cabs downtown. They're trying to increase the number of 
cabs that are available downtown. If they put in a rule that says 
you can't dead-head to the Airport, you have to take a fare out to 
the Airport, that might, at certain times of the day impact the 
number of cabs available at the Airport but we've made those times 
known to them and asked them to recognize the constraint. They've 
indicated that they will. If they put out another rule which says 
you can take four people to the Airport from the Hilton, fine. 
That's great. Maybe that's less congestion so it effects the Airport 
in a positive way but I don't see it as a terribly negative- impact. 

We talked to the Police Commission, I talked to the Chief. The 
people in the Mayor's Office talk to us about their taxicab efforts 
all the time so if we saw anything that was going to be terribly 
detrimental to the Airport we certainly would one, express our views 
on it, and, two, bring it to the Airports Commission. At this point 
there's nothing that they're saying that has, in my opinion and the 
opinion of staff, would cause a significant detrimental effect to the 
Airport that they intend to do. Now don't get me wrong. They've 
said a lot of things in terms of thoughts and blue sky and a lot of 
them have gone nowhere and to react to something that goes nowhere is 
a waste of time. 

Commissioner Fleishell: Did you know that ride-share was passed by 
the Commission once and turned down by the Board of Supervisors. Are 
you aware of the reasons why it was turned down? 

Minutes, July 21 , 1987, Page 19 



Mr. Turpen: Do you mean from downtown to the Airport? 

Commissioner Fleishell: Yes. 

Mr. Turpen: No. 

Commissioner Fleishell: You ought to inquire. You also know that in 
other cities where they've tried this most of them have turned it 
down because you cannot get a cab ride. I don't like to share a 
cab. When I get off a plane I want to get into a cab. If you have 
share-a-ride you can't because with the practices in some other 
cities, when you get downtown they collect a meter from each person. 
They do it double. They did it recently to a friend of mine from 
Germany who got the number and so forth. 

Commissioner Tsougarakis: It happens in Los Angeles. 



Mr. Turpen: One other thing before we go further. That's the 
limousine thing. Jerry, would you comment on that so we can get the 
record straight. 



Mr. Copelan: I want to clarify one point that Mr. Orloff had 
mentioned and that was the ability or the rights of the successful 
bidder in the van service to solicit or sell other services such as 
limousines from the booth. This is a concept that he had been 
endeavoring to have included in the specifications for some period of 
time. I believe his comments are based on a telephone conversation 
we had just the other day and I have to apologize if I led him to 
believe that those services would be included. They are not. 



Commissioner Fleishell: That's what I wanted to establish, 
Commissioner Bernstein: They're not included. 
Mr. Turpen: Right. 



Commissioner Bernstein: Let's go on with this. Mr. Hall, City 
Cabs. Please try not to be repetitious. If you have anything else 
to add. . . 



Mr. Hall: Good morning, Commissioners. I'm a cab driver for City 
Cab. I wanted to talk on this issue because I feel that continued 
viability of the cab industry is at stake and the continued viability 
of my job is at stake. San Francisco, for many years, has seen 
itself as a tourist city and I believe that requires quality cab 
serivce. To serve the tourists not just at the Airport but in the 
City at large. Any reduction in our ability to go to and from the 
Airport is going to have an adverse effect on our income and we're 
going to see a further decline in the quality of the cab drivers 
because the professional drivers will continue to leave our industry. 
Now, it's been proposed that we be allowed to have a share-ride 
system from the Airport and Commissioner Fleishell has had some 
objections to that. I believe most of them can be addressed by 



Minutes, July 21, 1987, Page 20 



having proper informational boothing or advertisement at the Airport. 
We've requested, for some time, the ability to advertise our services 
in the same way that other ground transportation does within the 
terminals and we have not been allowed to do that. 



Commissioner Fleishell: That's not before us. I don't think 
share-a-ride is before us. It's not part of the issue. 



Mr. Turpen: The issue before the Commission is simply the authori- 
zation to screen potential bidders for a van service agreement and 
what will happen is if the Commission authorizes this today we will 
send out a notice to the world. Anyone who is interested will send 
it in and we will evaluate their qualifications and then come back, to 
the Airports Commission with a bid. 



Mr. Hall: I understand that Commissioners. It was always our plan 
to bid for the ground transportation service. My plan, which is at 
least two years old, is to offer a two-tiered system whereby cab 
drivers who wanted to serve as single transportation for one party 
could do so. If they elected to serve as a share-a-ride system they 
could do that as wel 1 . 



Commissioner Fleishell: But that's not before us. What you want to 
do is not before us. What is before us is what the staff has 
proposed and I guess I'm guilty for getting off the subject by 
mentioning it. It would be helpful if you'd address what is before 
us. 



Mr. Hall: The issue at stake here is who can qualify for a bid for 
this contract. We believe that we could certainly qualify for a bid 
but probably not under the criteria that has been set forward so far, 



Commissioner Bernstein: The bids are open for everyone that 
qualifies. We're not going to eliminate anyone. 



Mr. Hall: Thank you so much. 

Commissioner Bernstein: Ed Barker, Sunshine Cab Company. 

Mr. Barker: I'll pass. 



Commissioner Bernstein: Thank you. Oh, here's another friend of 
mine. . .Bi 1 1 Lazar . 



Mr. Lazar: My name is Bill Lazar, President of SuperShuttle. When 
SuperSuttle began operations in San Francisco in October of 1985 one 
of our initial goals was the development of a successful working 
relationship between our company and the Airport and I have 
personally devoted a significant measure of time towards that 
objective over the last 21 months. I have always presumed that we 
were supposed to be working jointly to assure the convenience of the 
traveling public. Certainly, concern for the passenger comfort and 
convenience has driven SuperShuttle' s efforts at the Airport. 



Minutes, July 21 , 1987, Page 21 



In response to the letter we received regarding the memorandum dated 
June 26 which was received on Thursday of last week we have 
endeavored to come to some conclusions on some of the conditions that 
were brought forth in the pre-bidders conference. In Director 
Turpen's letter of the 26th, the public has demonstrated a desire to 
look at van services as an alternative mode of transportation. But 
with the existing attachments, primarily the loading zones of the 
letter Exhibit I, indicates in our opinion, a further restriction to 
the consumer. The loading zones are quite a distance from the 
carousel areas. The consumer now, after obtaining his bags, has to 
go to the upper levels. Just recently, about two weeks ago, the red 
and white zones, the ones that SuperShuttle and other van services 
operate from, have been moved and in PSA's case it's approximately 
500 feet from the PSA door. These zones that are located on the 
lower level indicate a walk of approximately 300 feet from the 
baggage carousel areas. In our opinion they are not very convenient 
to the user. It was a question that we brought forth at the pre- 
bidders hearing about .why the zones were changed to an under-utilized 
area at the Airport to reduce congestion when, in fact, the existing 
modes of transportation have a beneficial area for loading. . .the 
taxis on the outside areas closest to the carousels and the existing 
bus contractor in front of each of the terminals at the carousel 
area. It's our feeling that SuperShuttle or any van company that 
bids this contract should have an opportunity to provide the high 
level of service to the consumer. 

Secondly, on issues regarding the age of the vehicles, it's our 
information that our vehicles operate about 100,000 miles per year 
and after three years we take our vehicles out of service and replace 
them with brand new ones. Those rules were also amended to indicate 
an age of a vehicle of approximately four to five years on an average 
basis which, to us, sometimes diffuses the idea of first class 
service. A vehicle of five years, with 500,000 miles and a number of 
passengers may not be the first class service that the Airport is 
looking for. It's our position that this particular item, that these 
items should continue to be addressed and the Commission should take 
a hard look at whether or not at this point to go out to pre-qualifi- 
cation of this bid or wait to get some further information regarding 
some of these areas and clarifications on these issues so that the 
bidder will have a real good idea of what they're bidding for. I 
appreciate the time. 

Commissioner Bernstein: Thank you, Bill. 



Mr. Turpen: Two comments for the Commission. One with respect to 
the zones. The zones are noted in your Exhibit I of your package. 
One is adjacent to the South Terminal near PSA; the second "is between 
the South and International Terminals which would be between Delta 
and Delta's future location in the International Terminal; the third 
is between the International Terminal and American Airlines; and, the 
fourth is at the far end of the North Terminal. The walks of 300 
feet might be maximum but I see the locations as 1) being optimum 
from the standpoint of accessibility and yet at the same time also 
optimizing our ability to move traffic through the terminal complex 
without the attendant congestion caused by vehicles being parked at 
the teminal curbs. 

The second is the question of age. We clearly heard what people are 
saying about age. We think four years average with no vehicle older 
than five is an equitable arrangement and one which will ensure the 
widest possible participation by qualified applicants and we will 
continue to recommend that. 



Minutes, July 21 , 1987, Page 22 



Commissioner Fleishell: On the location, I see the map. I can't 
picture them in my mind. Just generally speaking I just want to 
express my view that if we're putting something out to bid certainly 
they should have a much better location than if my wife drives into 
the Airport and drives up and parks in front of the terminal. We're 
going to put out contracts where people pay us money; they should get 
the best space and the average person who drives to the Airport 
should get the worst space, I think, because we want to discourage 
that and encourage the use of multiple transportation. I can't 
picture where they are. 



Mr. Turpen: We've looked at that. I think the problem is reaching 
30-million people, if you will, potentially who could drive to the 
Airport versus the contractor with whom we can deal fairly effective- 
ly on a day-to-day basis. I don't believe that you can discourage, 
and we've tried. We've worked very diligently in discouraging the 
use of private vehicles however that has not materialized. The 
forces which we can exert to discourage the use of private vehicles 
haven't been sufficient to discourage their use. They continue to 
come to the Airport. The zones that we picked recognize other ground 
transportation as well. We do have a large bus, we do have taxicabs, 
we do have other types of ground transpor- tation alternatives which 
are spread out across the entire lower level. To bring everything 
into the center of the terminal where everybody would like to be is 
physically impossible, number one, and, number two, would terribly 
congest the Airport and would allow us not to operate. The locations 
were picked after very careful thought as to how this could be done 
with courtyard support in the case of excessive number of vans, which 
for some operational reason might occur. And we felt that these 
locations adjacent to the courtyards out of the main stream of 
traffic flow so that when people exited the terminal buildings they 
could look to their left or right for vans, across the street for 
taxicabs and to their left or right for other ground transportation 
services. So these ground transportation services are spread 
literally across the entire lower level. These locations were picked 
simply because they fit with everything else that's going on down 
there and you can't take them in an abstract sense. I understand 
that in an abstract sense they appear to be remote but from a 
practical sense they are not. 



Mr. Hall: Commissioner Bernstein, on that one response to the 
looking left or right. . .after you exit the PSA terminal you look left 
once and you cannot look right beyond that point and see a vehicle. 



Mr. Turpen: And I might point out for the record that if the 
Commission will look adjacent to Boarding Area 'A' in the triangle 
. . .(changed tape) . . . 



Mr. Marv Gralnick: ...I received it on the 20th, the meeting here is 
on the 21st. It doesn't give you much time to get some response and 
go through it. I've heard a number of times today that this is 
nothing more than pre-bid specs. That they are going to analyze 
whoever puts them in or whoever the bidders are going to be, they can 
start in with the process. This has changes in the contract. We 
don't even have a contract. These are changes to the contract and 
the taxi industry doesn't have a contract. Incidentally, my name is 
Marv Gralnick and I'm here representing the San Francisco Taxi 
Association which represents about 80 percent of the cabs in San 
Francisco and also DeSoto Cab, I'm the manager. And, I hopefully 
will get more than three-minutes because I am eliminating a lot of 
time by having each company come up individually and talk. 

Minutes, July 21 , 1987, Page 23 



I will say one thing, that this represents two things not one. It 
also has changes here in the contract, and as far as changing the 
location where the SuperShuttle stands will be, the Director, at any 
time, according to these changes can change them. That's all they 
have to do is, hey Lou, we're in the wrong spot. Okay, it's changed. 
That's the way this is worded. 



Commissioner Flei shell: Do you object to that? 



Mr. Gralnick: I object to the Director being the dictator at that 
Airport and just unilaterally without possibly informing the 
Commission and doing this or doing that. But this contract certainly 
says that he can change the location himself. 



Commissioner Tsougarakis: Do you understand the difference between 
policy and procedure? 



Mr. Gralnick: Well, certainly there is. We certainly are in the 
middle of meeting with the Mayor's Office and the Police Commission 
and the Supervisors trying to get this thing rolling to compete at 
the Airport and to compete with the vans. Right now we have legisla- 
tion before the Committee that will put it before the Supervisors on 
the share-ride and the share-ride is indeed an answer to combating 
some of the van business and we intend to go after this whole- 
heartedly. 

Interior booths... and this is not the whole contract. We don't have 
the whole contract so we can't really speak intelligently on it. But 
the changes... it is against the PUC rules and regulations to have a 
van solicit. This contract calls for solicitation, which is actually 
illegal. Number two, they are down there right now soliciting; the 
taxi cabs are operating at a disadvantage at the Airport right now. 
We are getting $300 fines for picking up upstairs. The vans are not 
supposed to solicit; they are soliciting; there are no fines. There 
is documentation of them going inside the Airport, they have people 
that are soliciting for them on the curb, gathering all this trans- 
portation into the City for the vans and they're actually operating 
down there with two hands tied behind their back. The cab drops off 
upstairs, away he goes into the hold lot for one hour, two hours, 
three hours. These vans have cut into the earnings of over 2500 
drivers here in San Francisco and in a lot of cases, owner drivers. 

There's talk about hiring an attorney. We have an implied contract 
with the Airport. We're paying $1.50 every time one of those cabs 
goes through. The vans, on a maybe basis, are paying 35£ every time 
they make a round upstairs. We have submitted a proposal to the 
Airport Commission wherein we feel that the way to do this thing at 
the Airport is to give everybody a break, every van whether he has 
one van, 10 vans, 200 vans, have a staging area, have them go through 
the Airport the same as the cabs go through. Pay $1.50, pay $2.50, 
whatever the income should be from that. Stop at a gate, give the 
ticket out, the same as the cabs do. And that would be the 
democratic way to operate the Airport as far as vans go rather than 
singling out one company. 

We had one company at the Airport for many years and it never worked 
out. We had Yellow Cab picking up where nobody could pick up. They 
had won the contract and eventually the Supervisors instructed the 
Airport to allow the major companies to pick up and then when Yellow 
went out of business everybody was allowed to pick up. It's the 
democratic thing to do. 

Minutes, July 21, 1987, Page 24 



The soliciting, I don't see how they get away wth it now and they're 
just not enforcing it. As far as rules and regulations at the 
Airport any different than in San Francisco, that is San Francisco. 
There are no different rules and regulations at the Airport for group 
loading than there are in San Francisco. The Police Code determines 
how a vehicle operator should operate. Refusal to convey is the 
same in San Francisco as it is at San Francisco Airport. Those are 
rules laid down by the San Francisco Police Department that were 
followed through by somebody from the San Francisco Police Department 
at the Airport years ago and the enforcement of such was done by the 
Airport Police but the rules themselves come out of the San Francisco 
Police Code. Refusal to convey, luggage, whatever it's going to be 
with a cab operator and I can agree with Commissioner Fleishell, 
there could be individual, when they're group loading, charge each 
one the same price. It has happened and some of them try to do 
this. But, that's all you hear about is the one out of a thousand 
that tries to do this but the 999 that are successfully taken into 
San Francisco, dropped off and they indeed pay their proportionate 
share, you don't hear anything about them because they have nothing 
to complain about. 

The fact that we are in the process of negotiating this thing, the 
fact that we weren't notified enough, the fact that we don't have a 
contract, I would respectfully ask this Commission to delay, and I 
agree with the spokesman for SuperShuttle that we agree that we would 
like a delay in this and we would like a study. There was supposed 
to have been an impact study for the traffic downstairs. When you're 
replacing one bus with maybe 30 vans, it seems to me it would create 
a little problem down there. It wouldn't help a traffic problem. I 
see where buses have been moved from the inside to the outside as of 
next month, is that true. The Airport bus has been moved from the 
inside track to the outside track as of the middle of next month. 



Mr. Turpen: There is a test which will go on for a period of two 
weeks commencing about the 15th of August, relocating the large bus 
to an underutilized zone on the center island. 



Mr. Gralnick: I really hope that a test is run putting some of the 
cabs upstairs and let them pick up and I think that would eliminate a 
lot of traffic problems and maybe we could do away with the van 
contract that we have proposed here. 



Commissioner Bernstein: Marv, let's go. 



Mr. Gralnick: I would respectfully ask this Commission to delay 
this, take some good time, get a traffic impact study down below, 
give the Mayor's Office, give the Police Commission, give the 
Supervisors a chance to review all this and come up with some answers 
and then at that time look at the thing. 



Commissioner Bernstein: Thank you, Marv. 

Commissioner Tsougarakis: Next. Who's the next speaker 



Commissioner Bernstein: Just three more on this. Mr. Robert 
Franklin, Teamsters. 



Minutes, July 21 , 1987, Page 25 



Mr. Franklin: Yes, Commissioners, I would just like to ask you to 
postpone any decision on this matter because we did not know about 
this meeting and I called the Teamsters Joint Council and they were 
unable to send a representative to this meeting on short notice. 



Commissioner Tsougarakis: Are you planning to bid? 



Mr. Franklin: Well, clearly this bid is effecting a number of our 
union members. 



Commissioner Tsougarakis: You still have plenty of time. This is 
only a prel iminary. 



Mr. Franklin: I'm not in a position to speak on this matter I'm just 
asking you to postpone this on the basis that we weren't notified. 
We did not have proper notification. 



Commissioner Tsougarakis: Are you planning to bid? 

Mr. Franklin: I'm not planning to bid. 

Commissioner Bernstein: Mr. Fenyes, Associated Limousines 



Mr. Fenyes: Good morning, Commissioners, I'm going to be very brief 
because Mr. Gralnick has already said most of the things that I was 
going to say. I wi 1 1 not bring up any of the issues we have with the 
San Francisco Ground Transportation Coalition, however, being the 
Vice President/General Manager at Associated Limousines I would like 
to mention that we feel that after the bid that we have made and all 
of the arrangements that we have made for share-ride through the PUC 
with the assistance of the Airport that should this proposal be 
accepted and should this van proposal be as it stands right now, we 
at Associated Limousine feel that this would be in direct breach of 
our contract at San Francisco Airport. 



Commissioner Bernstein: Thank you. Mitchell Rouse. 



Mr. Rouse: President Bernstein, members of the Commission,, my name 
is Mitchell Rouse and I'm with SuperShuttle and I would like to just 
reiterate our objection to the proposed location of the pick up zones 
for the vans and point out that there are six proposed pick up zones 
for the Airport bus, the new bus contract, there are six for the 
taxis, there are four proposed for the van locations. Those four are 
at the absolute ends of the terminals. As you walk out of the 
terminals in several of the places you can't even see, because of the 
curvature of the Airport, the proposed van pick up locations and I 
feel that if this bid is left as it is and those locations are the 
bidable item that this may make this contract unbidable. 



Commissioner Bernstein: Thank you. 
Mr. Turpen: Mr. DePaule: 

Minutes, July 21 , 1987, Page 26 



Mr. DePaule: My name is Andy DePaule of Good Neighbors Airport 
Shuttle. The thing I want to bring up is when I was here the last 
time a couple of months back when this was first proposed is that the 
way it was set up, the only ones who really qualified for it at that 
time was SuperShuttle and there seems to be a feel ing. . .(interrupted 
by Commissioner Bernstein) 

Commissioner Bernstein: You said the only ones who qualified... 

Mr. DePaule: At that time the only ones who qualified under the 
proposal as qualified bidders was SuperShuttle. Now they have made 
some adjustments after we had a meeting and the idea of the meeting 
was to try and adjust to where more people could qualify and there 
were some slight adjustments made but at this point really nobody 
qualifies that didn't qualify before. And anybody who was not 
qualified before the bid still is not qualified to bid. That was my 
first point. 

I think that meeting in a sense was just an exercise in futility 
because there was no intent on the part of the Airport staff to open 
this up to a point where everybody could participate. The idea was 
to keep it as close to the original proposal as possible. But to 
give the appearance of opening it up. 

The other thing I want to suggest is I think it's obvious that this 
proposal is going to go through pretty much as it's designed and I 
think it's obviously designed in such a way that SuperShuttle will 
get it. 

Commissioner Bernstein: What do you mean "designed". 

Mr. DePaule: I think it's designed in such a way that SuperShuttle is 
theoretically going to get this contract. I don't personally mind 
that because I can't afford to bid or to give the Airport 12 percent 
of my income in order to operate but what I'd like to suggest to make 
this more fair and level is essentially what you're doing is selling 
the right to solicit passengers because the winning company, whoever 
that may be, will get a booth downstairs in each of the terminals. 
What I'd suggest is that the other companies, which are now told... 
(interrupted by Commissioner Bernstein) 



Commissioner Bernstein: You're losing me someplace along the line. 
Are you telling us what to do, or threatening us? 

Commissioner Tsougarakis: He's expressing his opinion. Let's let 
him finish and then go on to the next speaker. 



Commissioner Bernstein: You've got me in left field and usually I'm 
not. I 'm not that old. 



Mr. DePaule: I'm sorry, I might have gotten ahead of you. I didn't 
mean to. Essentially, whoever wins this contract is going to have to 
be a large company or corporation. 



Commissioner Bernstein: But you told me it's all set, isn't it? 



Minutes, July 21 , 1987, Page 27 



SPECIAL ITEM: 

The following item was unanimously adopted. 

1. Resolution Naming the Open Courtyard in Boarding Area 'D' in Honor of 
William K. Coblentz 

No. 87-0140 

Mr. Lou Turpen, Director, said that at the June 16 Commission meeting 
the Commission discussed an appropriate way of recognizing the 
contributions of former Airports Commissioner Bill Coblentz. Staff 
has conducted a review of alternative sites and recommends that the 
atrium in Boarding Area 'D' be named in honor of Commissioner 
Coblentz. He said that the accomplishments of Commissioner Coblentz 
need no amplification and he is pleased to make the recommendation. 

Commissioner Bernstein thought that this honor was well deserved and 
thanked the Commission of behalf of Commissioner Coblentz. 



DIRECTOR'S REPORTS: 

2. Boarding Area 'E' Principal Concession - Oral Report 

Mr. Turpen said that the Commission established July 1 as a deadline 
to receive HRC approval of the Airport's principal concession concept 
for Boarding Area 'E'. Staff is to work with HRC to achieve that 
end. Absent approval by the Human Rights Commission by July 1 that 
concession opportunity was to be bid as a straight concession without 
the principal concession concept. If the HRC approved the principal 
concession concept as structured by the Commission then staff was to 
withdraw the bids and rebid it 1n an amended format. Permission was 
received from HRC to proceed with the principal concession concept on 
July 1 however that permission was subsequently withdrawn due to 
legal considerations. The choices now remaining are to either bid it 
as a straight concession opportunity as the Commission directed 
staff, absent HRC approval; or, to take a look at breaking the 
concession into smaller increments. This was discussed at the March 
4, 1986 Airport's Commission meeting at which time the Commission 
opted to consolidate it into a single bid simply because some of the 
entities were so small that it was determined that they could not 
financially stand alone. 

Mr. Turpen said that although he has already been given authorization 
to move ahead he wanted to discuss it with the Commission one more 
time. Unless the Commission directs him to the contrary he will 
proceed with a bid for Boarding Area 'E' as a straight concession 
pplicable rules of the City. 

Commissioner Stephens asked for an explanation of "straight 
concession opportunity concession." 

Mr. Turpen responded that there were two options. One was the 
principal concession option with a 30 percent space set aside for 
minority/women participation, the other opportunity is without a set 
aside. He explained that the space can either be bid as a block with 
all of the spaces tied together as a single concesssionaire, or, to 

Minutes, July 21 , 1987, Page 5 






Mr. DePaule: Essentially it is 



Commissioner Bernstein: So there's no point in discussing it, is 
there? 



Mr. DePaule: There is a point in discussing some matters. 
Commissioner Bernstein: I don't understand what's going on here. 



Commissioner Tsougarakis: He represents a small van company and he 
is saying he doesn't have a chance. 



Commissioner Bernstein: That's not what he's saying. 
Commissioner Tsougarakis: Yes he is. 
Commissioner Bernstein: He's saying it's all set. 
Commissioner Fleishell: He has three minutes. 



Mr. DePaule: As long as the pre-bid proposal and the qualifications 
for the bid are like they are now it's pre-set. Whoever wins the 
contract is going to be allowed to have booths where they can solicit 
people and we are told that other companies which either did not bid 
or did not win the bid will be able to continue operating upstairs 
where it is illegal to solicit passengers. Has the Commission given 
any thought to the idea of also having a booth downstairs where 
companies which do not serve from the downstairs can also offer their 
services to the public by having the people walk upstairs. In other 
words some level of eveness because obviously only one company can 
win the bid and that's going to leave six other companies feeling 
left out. 



Commissioner Bernstein: That is obvious, isn't it. Then what's the 
use in talking about it? 



Mr. DePaule: What's the use in having an Airports Commission if 
you're not going to listen? 



Commissioner Bernstein: I'm not going to bother denying it. 



Mr. Turpen: That concludes it. I think we ought to go out and 
pre-qualify the firms and we'll see how many firms qualify to bid. 



Mr. Leonoudakis: Mr. Chairman I submitted a card. May I speak on 
this item. 



Mr. Leonoudakis: Commissioner Bernstein, I want to call your 
attention to the way this item was agendized on your calendar today 



Minutes, July 21 , 1987, Page 28 



and it reads as follows: "Authorization to Conduct Airport Van 
Service Agreement Pre-qual if ication Process". That isn't what this 
item is. This item has two points to it, the first of which is to 
have you approve the van specifications. When you pass this 
resolution that is before you it says as follows: "Resolved, that 
this Commission approves the terms and conditions of the Airport Van 
Service Agreement." Let me tell you, you've been telling all of us 
your day will come to object to the terms of the final draft of the 
van agreement. There's a pre-bid conference, the agreement is placed 
into a final form. We have not, to this day, seen the final form. 
This is our time to object. How can we object if we don't have the 
document. 

Commissioner Bernstein: Is he right? 



Mr. Turpen: The Airport had two pre-bid conferences on this as well 
as several meetings. The Commission considered the results of the 
pre-bid conference on June 16. At that time I told the Commission we 
were coming back with a request to conduct a pre-qual ification of 
firms. The only reason we haven't done it before now is because of 
the fact we did not have a Commission meeting in July. When we had 
the pre-bid conferences I told everybody in attendance there, and the 
room was full of people who never were notified, that we would go no 
earlier than June 16, so clearly this is it. What you have before 
you is the skeletal specs. We have not put in all of the boiler- 
plate and all the standard City language which is in every contract 
but we rarely do that, if ever. We will do it when we send it out 
for pre-qual if ication but we simply don't put in a lot of boiler- 
plate language. 



Commissioner Bernstein: You can't do it in advance. 

Mr. Turpen: I can put in the boilerplate language but it would make 
the package very thick and the highlights would be lost in the 
package. 

Commissioner Bernstein: Is Mr. Leonoudaki s' s contention correct? 



Mr. George Wong: I think he's correct in the sense that If 
Attachment I is the skeleton of the specs. 



Commissioner Bernstein: You can't have people vote on it and take 
skeletons when you're talking about millions of dollars. 



Commissioner Tsougarakis: Attachment I covers the main points of the 
contract. Now, I don't think that anybody that has spoken so far is 
debating the specific legal language, their debating the main points 
and those have been made clear and they were made clear at the pre- 
bid conference. There have been significant changes on the basis of 
that conference so I don't think that this is a process that has gone 
on at least for the 2-1/2 years that I've been on this Commission. I 
don't see anything different than anything we've been doing. 



Mr. Turpen: And for the record we always go with a skeletal arrange- 
ment for the benefit of the Commission and the public. For us to put 



Minutes, July 21 , 1987, Page 29 



400 pages of legal documents in here for people to sift through would 
be inappropriate. We think that this form, and I think Commissioner 
Tsougarakis is absolutely correct, the people who are objecting are 
objecting to things that are said in this document. In this document 
we captured in and will be surrounded by boilerplate language as it 
traditionally is in virtually every contract we put out. Now I can 
understand if the tactic is to delay, I can understand it. But the 
point is this has been going on for a year, this has been debated, 
discussed repeatedly and I think any further procrastination is 
unwarranted. 



Mr. Leonoudakis: Mr. Bernstein, if I might respond. We have been 
told now, time and time again, we're going to go forward with this 
part of it. It just moves the bid process ahead. Your time will 
come to discuss the formal document. And it's not a 200 page 
document, it's a simple van service agreement. We haven't seen it, 
the final form, we haven't seen it to this day. All I'm asking is 
that all of us who have an interest in this item be allowed to 
intelligently see that final document, review, discuss it among 
ourselves. Those of us who have parallel points will come here and 
discuss them with you one at a time as they appear in the very 
document. To take just a skeletal section of items and say, now 
let's discuss this is unfair to all the people who are interested. 
There are many, many other things that will appear in the final 
document. And I ask you not to approve it today. Send out that 
final document that is the result of the pre-bid conference so that 
we all know what we're talking about. Otherwise this, as one of the 
speakers says, is an act of futility. I don't have that document. 
I'd like to have it and I'd like to be able to discuss it and I ask 
just on that one point if the Commission would continue this item 
until the final document is prepared and sent forward to us. 



Mr. Turpen: Mr. President, for the record, complete documentation 
was handed out at the pre-bid conference, was it not Jerry? 



Mr. Leonoudakis: There have been changes made to it though. 



Mr. Turpen: Yes, but the changes in the documentation have only been 
to the point of where the zones might be or things that are captured 
in this document. Now there have been no other changes. 



Commissioner Fleishell: The contract itself that will ultimately go 
out has been handed out to the intended bidders. 



Mr. Leonoudakis: But we do not have it in final form. 



Commissioner Fleishell: You can't have it in final form until we 
approve these changes. 



Mr. Turpen: You won't have it in final form until it is signed by 
everybody and we bid it but that's not the point. The point is 
clearly that the skeletal document, the document that was handed out, 
the draft document, the one we intend to use. We can debate whether 
or not... it's very simple, it's up to the Commission to decide 
whether or not the Commission wants to proceed or wants to be tied up 
on a technicality now and in two weeks on a further technicality. 



Minutes, July 21 , 1987, Page 30 



After all, it's only been since 1981 that we've been trying to get 
the bus bid. We can surpass that record if we try hard enough. I 
think these are technicalities and I think that at the end of the day 
we either agree or disagree with the speakers. The speakers have 
made a series of points on what is clearly contained in Attachment 
I. I dispute what they've said, I disagree with what they've said 
and my recommendation to you is to proceed as outlined. If, in fact, 
the Commission would rather go another way I'm happy to change it and 
let's proceed, but to put further delay. .. (interrupted by 
Commissioner Fleishell) 



Commissioner Fleishell: Let me ask you a question. I'm concerned 
about the location of the pick-up zones. I really am. I just came 
back from two trips where I had to carry baggage so I'm now aware of 
the problem. I'd like to move ahead but with some provision that if 
some of us don't like the way you've located these pick-up points and 
we want to change them I want the opportunity to change them. 



Mr. Turpen: Let me say one thing in response to Commissioner 
Fleishell, because it's important. 



Commissioner Tsougarakis: But you have the option to change, so we 
could run tests. 



Commissioner Fleishell: We always have the option down the line but 
...(interrupted by Mr. Turpen) 



Mr. Turpen: Technically, Commissioner let me say this, that within 
this document it says that the loading zones can be changed. It's 
clearly contractually understood. My commitment to you is if you 
feel they should be changed at some point, fine, I'll be happy to 
respond to that positively. However, I do want to point out that the 
zones are adjacent, if you look, the zones are adjacent to five of 
the seven boarding areas at the Airport. 



Commissioner Fleishell: I don't know, mentally I can't picture them. 



Mr. Turpen: Okay, I'll tell you where one is. One is adjacent to 
PSA, one is adjacent to the new Delta concourse, Boarding Area 'C, 
which as you know is under construction, it's between the Delta 
concourse and the International Terminal on the lower level. 
Remember the old courtyard? Okay, one is between AmericanAirl ines 
and the International Terminal adjacent to where the Commission 
normally parks. These are not locations which are cast out in the 
wilderness recognizing something else. This is not to be taken by 
itself. We have other ground transportation alternatives on the 
lower level as well. They are competing. 



Commissioner Tsougarakis: It's okay. They can be tested. We 
understand that. 

Mr. Turpen: My commitment to you is that this can be changed. If 
the zones become critical, then we can amend it. At this point my 
recommendation is to stay with the zones because I think they have 
been carefully considered. And I would suggest moving ahead. 



Minutes, July 21 , 1987, Page 31 



Commissioner Fleishell: Then I will move the. .. (interrupted by Mr. 
Leonoudaki s) 



Mr. Leonoudaki s: May I conclude Commissioner Fleishell. I would 
like to make one other point, if I might. We are opposed, of course, 
to any disruption of the current ground transportation set-up until 
the very study, which you have ordered, on traffic congestion comes 
before the Commission. You've spent money to have a study made and 
as you've so often said, Mr. Bernstein, that you would not proceed 
with this until that study was concluded and I would hope that you 
wouldn't go any further until the study is in. 



Commissioner Bernstein: Steve, but you're using the wrong word. I 
never used the word destruction. I think a study is in order but 
it's in order for all of us; for those of us at the Airport as well. 
It's an ever changing institution, growing and requires change. I'm 
certain that it requires destruction. 



Mr. Leonoudakis: I just feel that you shouldn't go ahead. 



Commissioner Bernstein: When you and debate I want to be very 
careful of my language. 



Mr. Leonoudakis: You now have a contracted limousine service down at 
the lower level, you have a wonderful taxi service at the lower level 
and you have a bus service. We pay over $2-million a year to be in 
the position we're in. You also have on the upper level all of the 
vans and the rent-a-cars, shuttle buses and the parking shuttle bus, 
the hotel shuttle buses and they are all operating in harmony now. 
It's a delicate balance. Why would you want to now take and put the 
vans downstairs and the large bus on the inner island. That breaches 
our understanding of implied agreement with the Airport and we've 
been through that. 



Commissioner Bernstein: Steve, I don't want to interrupt but that's 
an operating problem and that's within the discretion of the Director 
of the Airport. It is not within the discretion of the Commission. 
I'm not going to run the Airport. 



Mr. Leonoudakis: I'm suggesting that you not approve these specs 
because of the destruction of that very delicate balance. -Let me 
raise one last point. It's my contention that the bids, and many of 
us in the industry, this bid is drafted for one van operator. Now 
let me just... think about this scenario. I am a van operator and I 
want to bid this contract so I have purchased 50 vans. I'm going to 
bid lower level against the curb. So I come to you and I say, what 
am I getting for a minimum of $200,000 and 12 percent of my gross? 
You're going to say to me, you get the lower level, curbside location 
and if it doesn't work too well for you, you can petition the 
Director of the Airport to be opposite the carousel so that when the 
people come out with their baggage they'll be there. Now that's what 
you're going to get. So I'm going to bid. But I ask you... 
(interrupted by Mr. Turpen) 

Mr. Turpen: That's not what it says. Commissioner, for the record. 



Minutes, July 21 , 1987, Page 32 



Mr. Leonoudaki s : I ask you this, I say now if I bid and I am 
successful, what will happen to the balance of the van competition? 
Will I still be competing against SuperShuttle upstairs with 62 vans 
or 80 vans or whatever their number? Incidentally, will you ever 
limit the number of SuperShuttle vans that can come onto the Airport? 
Will they one day have 200? Will that be okay with you? But I'm now 
downstairs and I've paid you my good money. Are they still going to 
operate upstairs? And I ask that of Mr. Turpen. Will they? 



Commissioner Tsougarakis: Yes 



Mr. Leonoudakis: Will the SuperShuttle vans still operate upstairs 
if I win the van contract downstairs. 



Commissioner Tsougarakis: Yes. 

Mr. Turpen: They'll operate out of the zone 



Mr. Leonoudakis: And all the other van operators will operate out of 
the zone. So what are you actually putting out to bid? You've 
nothing to put out to bid. 



Mr. Turpen: Then no one will bid. 

Mr. Leonoudakis: There's only one bidder and guess who that is 

Mr. Turpen: You, Mr. Minimum Bus. 



Mr. Leonoudakis: SuperShuttle. That's the only bidder. This is a 
bid package that is designed for... it doesn't fit. And as I say, if 
I ever saw the final draft I'd be here addressing each point in that 
final draft. I don't think you ought to go forward with this thing 
until, number one, we in the ground transportation industry have had 
a chance to see it; and, number two, you've eliminated every possible 
competitor by the way the document is drafted. I urge you not to go 
forward with it today. Thank you. 



Commissioner Tsougarakis: You were going to make a motion. . 
Commissioner Fleishell: The motion is made, it's pending. 
Commissioner Tsougarakis: I'm sorry I didn't hear the motion. 



Commissioner Fleishell: Oh. I thought before we discussed it there 
was a motion made and seconded. 



Commissioner Tsougarakis: Right. 



Commissioner Bernstein: Do you want to go ahead with the vote with 
two out. 

Minutes, July 21 , 1987, Page 33 



Commissioner Tsougarakis: If one of us votes against it it just gets 
delayed. 



Commissioner Bernstein: Don't you think it's the sort of thing that 
everyone should be voting on. 



Mr. Turpen: You get to hear all of this again. We have a major 
market. The marketplace has spoken. There is a demand for a certain 
type of service. 



Commissioner Tsougarakis: ...just the notion of share riding and see 
how it might effect this and it looks like there will be some effect 
then come back to us. 

Commissioner Fleishell: You mean taxi share riding. 

Commissioner Tsougarakis: Yes. 



Commissioner Fleishell: Okay. If we move ahead when would the 
semi-final agreement be done? 



Mr. Copelan: Within two weeks it will be ready to be sent out. 



Mr. Gralnick: I object to the fact that this contract is to be let 
out and bid. The term of the agreement says: "one hundred twenty 
days after award by Commission and ratification by City Board of 
Supervisors and Mayor; or the date of opening of business to the 
public from the operating premises, such date as determined in 
writing by Director..." If the Board of Supervisor's delays on this 
and it does not get to the Mayor the Airport then sets the date of 
the term. I urge that the contract must be approved by the Board of 
Supervisors and signed by the Mayor. 



Commissioner Fleishell: This is the law... it must be approved by the 
Board of Supervisors and the Mayor. 



Mr. Gralnick: I ask that it be delayed until the next meeting. 

Do you know who owns SuperShuttle? There is a conflict of interest 
with the owners of SuperShuttle. Who has a share in it? 



Commissioner Bernstein: If there is a change it will be reopened. 



Mr. Turpen: The Airports Commission will receive a list of qualified 
bidders resulting from this document. At that time the members of 
the public are free to comment again. When there is a winning bidder 
the public can comment once again but at this point there is no 
reason to impede the process. 



Minutes, July 21 , 1987, Page 34 



Bid Call : 

Insurance/Business Service Center 

No. 87-0143 Request to bid an Insurance/Business 

Service Center. 



9. Declaration of Emergency: 
Electrical Cable Failure 
Feeder 12 NAAN-1 Contract No. 1975 

No. 87-0144 Resolution ratifying the action of the 

Vice President of the Commission in 
declaring an emergency in electrical 
cable failure at the northwest area of 
the Airport, and directing the 
Director of Airports to effect the 
necessary repairs. 

Mr. Turpen told the Commission that this is the Chevron item. The 
Airport has provided Chevron with two back-ups. The problem has been 
addressed. 



CONSENT CALENDAR OF ROUTINE ADMINISTRATIVE MATTERS: 

Item 15 was moved to the end of the calendar for discussion and then put 
over. Items 10 thru 14 and 16 thru 21 were unanimously adopted. 

10. Bid Call : Contract No. 1877 

Emergency Pavement Repairs (1987-88) 

No. 87-0145 Resolution approving the scope, budget 

and schedule for Contract No. 1877, 
and authorizing the Director of 
Airports to call for bids when ready. 



11. Bid Call: Contract No. 1977 
Replacement of Cable 12BANA-1 

No. 87-0146 Resolution approving the scope, budget 

and schedule for Contract No. 1977 and 
authorizing the Director of Airports 
to call for bid when ready. 



12. Renew Howard Friedman's Professional Services Contract for Fiscal 

Year 1987-88 at No Additional Cost. Contract Amendment Extends Term 
of Contract to June 30, 1988 

No. 87-0147 



13. Type II Modification for Contract 1410ABCD 

South Terminal Complex Reconstruction - Phase I 

No. 87-0148 Contract modification to provide 

Minutes, July 21 , 1987, Page 35 



additional work for deficiencies in 
the plans and specifications, and 
items due to changes in the scope of 
work. $30,677.00 



14. Modification No. 2 to Professional Services Agreement - Steve Gregory 

No. 87-0149 Modification to agreement with Steve 

Gregory extending time to June 30, 
1988. 



Item 15 was put over to the end of the calendar. 

15. Resolution Approving Agreement with Li ttler, Mendelsohn, Fastiff and 
Tichy - $50,000 



6. $85,000 Contract with the Museum Society, Fine Arts Museums of San 
Francisco 

No. 87-0150 Contract for $85,000 with the Museum 

Society, Fine Arts Museums of San 
Francisco for the purpose of providing 
and implementing Temporary Exhibitions 
at San Francisco International Airport 
for the FY 1987-88 



17. Tenant Improvement: 

Qantas Airways Ticket Counter and Office Alterations 
T-3286 - No Cost to City 

No. 87-0151 



Tenant Improvement: 

U.S. Postal Service Loading Docks and Conveyor Unloading Area 

T-3270 - $250,000 - No Cost to City 

No. 87-0152 



19. Airport Development Aid Program (ADAP No. 11) 
Amendment No. 1 to Grant Agreement 

No. 87-0153 Resolution accepting Amendment No. 

to ADAP No. 11 Grant Agreement and 
authorizing the Director to execute 
said Amendment. 



20. Statistical Adjustment 1986-87 Joint Use Billings under Lease and Use 
Agreement 

No. 87-0154 Resolution adjusting 1986-87 Joint Use 

Minutes, July 21 , 1987, Page 36 



Billings pursuant to Section 101. W of 
the Airline - Lease and Use Agreement 
for American Trans Air. 



21. Request for Travel /Training Authorization 
No. 87-0155 

The following item was put over. 

15. Resolution Approving Agreement with Littler, Mendelson, Fastiff and 
Tichy - $50,000 

Resolution authorizing and directing 
Director of Airports to enter into 
agreement with the law firm of 
Littler, Mendelson, Fastiff and Tichy 
to provide advice and counsel with 
respect to personnel matters, to 
represent management in disciplinary 
proceedings and to handle litigation 
relating to personnel matters, the 
maximum compensation payable under 
said agreement not to exceed $50,000. 

Mr. Ed Brody, Plumbers & Steamf i tters, said he objected to a lawfirm 
being involved in personnel matters. The need for attorneys to be 
hired on personnel matters comes few and far between. 

Mr. Walter Johnson said that over the years he has been involved in 
labor negotiations and he has never come across this. He told the 
Commission that this firm is anti-labor and if they are involved in 
any negotiations an automatic strike sanction is granted. 

Mr. J.B. Martin, Automotive Machinists Union, Local 1305, asked why 
the Airport needed outside counsel. He thought the City Attorney's 
Office provided legal counsel. He said that the Airport is 
escalating costs and the firm being considered is shocking. He said 
that automatic strike sanction is given in San Mateo, Alameda and San 
Francisco when this firm is involved in negotiations. 

Mr. Martin also told the Commission that this firm has been involved 
in the filing of frivolous lawsuits. He said that if it is necessary 
to hire an outside lawfirm there are many other firms that can be 
hired. 

Mr. Art Pulaski said that staff must not be aware of this lawfirms 
severe reputation. Negotiations that they have been involved in have 
resulted in protracted disputes, such as the Oakland teachers strike. 

Mr. Pulaski said that this firm has had a court sanction issued 
against them. 

Mr. John McMahon of the Operating Engineers and Mr. Antonio Salazar 
Hobson of Local 790 also objected to the Commission hiring this firm. 

Commissioner Fleishell asked that the item be put over until the next 
meeting. 

Commissioners Tsougarakis and Stephens agreed. 
Minutes, July 21 , 1987, Page 37 



CORRESPONDENCE: 

Mr. Turpen introduced a Travel/Training item for three employees to attend 
a seminar for the maintenance of crash/fire/rescue vehicles in Oshkosh, 
Wisconsin, at no cost to the City. 

The Commission unanimously agreed. 

No. 87-0156 



M. ADJOURNMENT: 

There being no further calendared business before the Commission the 
meeting adjourned at 11:58 AM. 




|an caramatti 
Amission Secretary 



Minutes, July 21, 1987, Page 38 



SAN FRANCISCO 
AIRPORTS COMMISSION 




MINUTES 



DOCUMENTS DEPT. 

SEP 9 1987 

SAN FKANCISCO 
HU3UC LIBPARV 



AUGUST 4, 1987 



DIANNE FEINSTEIN, MAYOR 

COMMISSIONERS 

MORRIS BERNSTEIN 

President 

J. EDWARD FLEISHELL 

Vice-President 

DR. Z.L GOOSBY 

ATHENA TSOUGARAKIS 

DON RICHARDS STEPHENS 



LOUIS A.TURPEN 

Director of Airports 

San Francisco International Airport 
San Francisco, California 94128 



Index 

of the Minutes 

Airports Commission 

August 4, 1987 



CALENDAR AGENDA RESOLUTION 

SECTION ITEM TITLE NUMBER PAGE 



A. CALL TO ORDER: 3 

B. ROLL CALL: 3 

C. ANNOUNCEMENT BY SECRETARY: 3 

D. SPECIAL ITEM: 

1. Retirement Resolution: 

Hi 1 1 iam R. O'Brien 3 

2. Retirement Resolution: 

James F. McHugh 4 

3. Retirement Resolution: 

Martin A. Zaml ich 4 

E. DIRECTOR'S REPORTS: 

4. Report on RIDES Contract 4 

F. ITEMS INITIATED BY COMMISSIONERS: 

BART 4 



ITEMS RELATING TO ADMINISTRATION, 
OPERATIONS & MAINTENANCE: 

Professional Services Contract 

to Conduct a Study on Ground 

Transportation at San Francisco 

International Airport 4-6 

Contract No. 18411 - Solicitation 

for Architectural /Engineering 

Services - International Terminal 

Plenum Space Improvement 6-8 

Selection of Law Firm to Handle 

Airport Personnel Litigation 

Matters 8 



H. CONSENT CALENDAR OF ROUTINE 

ADMINISTRATIVE MATTERS: 

8. Tenant Improvement: United 
Airlines First Class Check- 
In Area - T-3293 - $50,000 - 

No Cost to City 8 

9. Bid Call: Contract No. 1976 

Silt Removal - 1987 9 

10. Bid Call : Contract No. 1943 
Material & Equipment Replace- 
ment, Cable 12AM-1 9 

11. Type II Modification: Contract 
824 - Taxiway Centerline 

Lighting 9 

12. Close-Out Contract 1414AB, 
Boarding Area 'B' Renovation, 
and Fix Final Contract Price 

at $19,305,736.63 9 

13. The Parry Contract 9 

14. Extend Roofing Consultant - 
Simpson, Gumpertz & Heger, Inc.'s 
Contract to May 30, 1988 at No 

Additional Cost 9 

15. Naming of Road R-2 and Renum- 
bering of Airport Buildings 10 

16. Approval of Claims Settlement 10 
I. CORRESPONDENCE: 10 
J. CLOSED SESSION: 3 
K. ADJOURNMENT: 10 



Minutes, August 4, 1987, Page 2 



Minutes 

of the 

Airports Commission Meeting 

August 4, 1987 



A. CALL TO ORDER: 

The regular meeting of the Airports Commission was called to order at 
9:00 A.M. in Room 282, City Hall, San Francisco, Ca. 



B. ROLL CALL: 

Present: 



Morris Bernstein, President 

J. Edward Fleishell, Vice President 

Z. L. Goosby 

Athena Tsougarakis 

Don Richards Stephens arrived at 9:15 
AM 



ANNOUNCEMENT BY SECRETARY: 



In accordance with Section 54957.1 of 
the Brown Act, Jean Caramatti , 
Commission Secretary announced 
unanimous adoption of resolution no. 
87-0157 regarding the settlement of a 
claim at the closed session of July 
21, 1987. 



CLOSED SESSION: 

The meeting recessed at 9:04 AM to go into closed session and -reconvened 
at 9:18 AM. 



D. SPECIAL ITEMS: 

Items 1 through 3 were unanimously adopted, 



1. Retirement Resolution 
Wi 1 1 iam R. O'Brien 

No. 87-0158 



Minutes, August 4, 1987, Page 3 



Retirement Resolution: 
James F. McHugh 

No. 87-0159 



3. Retirement Resolution: 
Martin A. Zaml ich 

No. 87-0160 



E. DIRECTOR'S REPORTS: 

4. Report on RIDES Contract 

An informational ststus report on the 
recently initiated RIDES contract. 

Ms. Angela Gittens, Acting Director, told the Commission that the 
RIDES program would not begin for another four to six weeks. 

Commissioner Tsougarakis said that the report indicates that the 
steering committee cosists of representatives from Hertz, Host, PSA, 
Northwest, USAir, United maintenace operations and the Airport and 
asked if that was generally the majority of the large employers. 

Ms. Gittens responded that it was, as well as those who have parking 
faci 1 ities. 



F. ITEMS INITIATED BY COMMISSIONERS: 

Commissioner Goosby said that each Commissioner received a letter from the 
Director of BART concerning that Board's consideration of a BART 
extension. The Director of BART has requested a meeting with the Preident 
of the BART Commission, Mr. Turpen and Commissioner Bernstein. He said 
that the letter proposed extending BART down to San Jose and eventually as 
far as Los Angeles. He said that apparently money is not the question at 
this time, they are simply seeking an endorsement of the concept. He 
wanted to alert staff that they will be contacted by BART representatives. 

Ms. Gittens said she would have the Director contact the Commission. 



G. ITEMS RELATING TO ADMINISTRATION, OPERATIONS, & MAINTENANCE: 

Items 5 through 7 were unanimously adopted. 

5. Professional Services Contract to Conduct a Study on Ground 
Transportation at San Francisco International Airport 

No. 87-0161 Award of Professional Services 

Contract, not to exceed $10,000.00, to 

Minutes, August 4, 1987, Page 4 



conduct a study on Ground Transporta- 
tion at San Francisco International 
Airport. 

Commissioner Bernstein asked Ms. Bonnie Nelson if she wished to 
address the Commission. 

Ms. Nelson, Nel son/Nygard, said that her firm is in a joint venture 
association with DKS Associates of Oakland. Her firm is 100 percent 
women-owned and based in San Francisco. She said that although her 
firm does not specialize in airports they do specialize in transpor- 
tation, specifically transportation operations, and they are very 
familiar with SFO's transportation problems. 

Ms. Nelson said her firm proposes a workshop technique which would 
bring together the providers, policy-makers and staff people to come 
to resolution on some of the important issues and develop answers the 
Commission can support. She felt that this process would result in 
the most positive step forward. 

Ms. Nelson told the Commission that her firm has participated in the 
HRC process in an attempt to attain recognition and they are willing 
to work with HRC in order get the points for which they have applied. 

Commissioner Bernstein asked Mr. Alex Skabardonis, Vice President of 
Deakin, Harvey and Skabardonis, if he wished to address the 
Commi ssion. 

Mr. Skabardonis said that this is a complicated problem that combines 
both planning and traffic engineering and is politically sensitive. 
He said that his firm has expertise and experience in all of these 
areas. 

Mr. Skabardonis said that he has been in traffic engineering for the 
last 10-years and has managed large contracts with the FHWA. Greig 
Harvey, the principle who will do most of the work, chairs the 
Transportation Research Board, has studied travel demands at MIT and 
teaches traffic engineering at Stanford. 

Mr. Skabardonis said that Elizabeth Deakin is a professor of City 
Planning at UC Berkeley and is president of the women-owned firm. 
She was a political appointee to the City of Berkeley and the City of 
Albany and has expertise in politically-sensitive issues. 

Mr. Skabardonis said that his firm is known for delivering high- 
quality products at a low overhead. He said they propose to do 28 
caseworks at the cost proposed by the study. 

Mr. Skabardonis told the Commission that his firm proposes a name 
change from Deakin, Harvey, Skabardonis to Research Analytics but 
they have not yet received confirmation by the State. 

Commissioner Bernstein asked Mr. Peter Mandel of Peat, Marwick, and 
Main, if he wished to address the Commission. 

Mr. Mandel, a manager with Peat, Marwick and Main, said that his 
firms practice is airport consulting. His fifteen years in airport 
consulting has entirely been on airport roadways, curb frontage 
allocation, etc. He has completed similar studies at JFK, LaGuardia, 
Dallas/Fort Worth, Newark, Miami, Denver and other major airports. 
His firm believes that its consulting practice can bring to this 
project a number of unusual opportunities: the experience of its 
senior staff, himself, Dr. Sherret and Richard Hall, all of whom have 
over 15 years of experience in airport roadway and curb operations. 



Minutes, August 4, 1987, Page 5 



Mr. Mandel said that they are located in San Mateo, 15 minutes from 
the Airport. Their familiarity with SFO and other major airports is 
the result of similar projects they have completed or now have under 
way. Because of their familiarity with SFO and the fact that they 
are doing similar work and have successfully completed projects else- 
where, they believe they can do this without going through a learning 
curve process. They believe they can get the job done efficiently, 
on-time and within budget and remain sensitive to the unique aspects 
of San Francisco. 

Mr. Mandel told the Commission that he is chairman of the American 
Society of Civil Engineers, Landside Operations; secretary of the 
Transportation Research Committee; and, he recently wrote a chapter 
in the forthcoming Manual of Airport Landside Capacity. 

Commissioner Tsougarakis said that in reading through the RFP's she 
was impressed with the amount of time each firm was planning to spend 
on this project. Deakin, Harvey, Skabardonis listed 192 hours; DKS, 
120 hours; and, Peat, Marwick, and Main, 100 hours. She said that 
the levels of expertise seem to be equatable. 

Commissioner Tsougarakis made a motion to hire Deakin, Harvey and 
Skabardonis. Commissioner Goosby seconded the motion. The vote for 
approval was unanimous. 

Commissioner Fleishell asked if the firm included the gentleman who 
did a similar analysis for the Steve Leonoudakis litigation. 

Ms. Gittens said that was correct. 

Commissioner Stephens said he would go along with Greig Harvey. 



6. Contract No. 18411 

Solicitation for Architectural/Engineering Services 
International Terminal Plenum Space Improvement 

No. 87-0162 Resolution authorizing Director to 

begin soliciting qualification state- 
ments from Architectural /Engineering 
firms to provide services for the 
International Terminal plenum improve- 
ment project. 

Commissioner Fleishell said that this terminal was just completed and 
asked why these items weren't taken care of then. 

Mr. Dennis Bouey, Deputy Director, Facilities Operations and 
Maintenance, first told the Commission that the $290,000 is only for 
the architect; the work will approximate $3-mi 1 1 ion . He explained 
that this item resulted from a punchlist of items compiled by BPC and 
Engineering that Engineering felt were unresolved at the completion 
of the International Terminal. He said he believed it was Jason 
Yuen's intention to go forward with the contract but due to BPC's 
goal of completing the South Terminal on-time and on-budget. 
Engineering has taken on the responsibility. In addition, he said he 
informed the City Attorney's Office some time ago that he felt this 
item might be either an error or omission on the part of the 
architect, Gensler and Associates, and it was his understanding that 
the City Attorney and BPC were working together to see whether or not 



Minutes, August 4, 1987, Page 6 



there was a case against Gensler. 

Commissioner Fleishell asked why staff wants to move ahead to expend 
money to correct what might be an error on the architect's part 
before that determination is made, especially since the architect 
could absorb the cost. 

Commissioner Fleishell said that each Commissioner took a tour of the 
International Terminal when it opened and made lists of items that 
needed to be corrected. He said that the Commission never heard 
anything more about those checklists. 

Mr. Bouey responded that his staff went through the terminal and 
found 400 items needing attention. Out of those 400 items Jason 
Yuen's group was able to correct about 350. He said that given a 
different time frame Jason's group would have been able to address 
the remaining items. He explained that this particular item cannot 
wait any longer as there are certain pieces of equipment staff must 
get to. He said that in one case there is a code issue that staff 
believes involves safety. He said that it's up to the City 
Attorney's Office to make the determination as to whether or not 
there is an error or omission and, if there is, to go after Gensler. 
He said that the alternative is not to do anything and risk the 
consequences . 

Commissioner Fleishell asked Mr. Garibaldi if he agreed that staff 
should move ahead without first exhausting the possibilities with the 
Gensler firm. 

Mr. Garibaldi responded that staff's problem is that some of these 
improvements need to be made in order to properly maintain the 
building. There are problems in the plenum that require immediate 
attention and staff can't get to them unless this work is done. 

Commissioner Fleishell argued that the problem has existed since the 
day we opened the remodeled International Terminal. 

Mr. Garibaldi responded that the problem is more acute than that. 

Commissioner Fleishell said he did not want to see the Airport lose 
any rights. He said that when he joined the Commission nine years 
ago the Airport was going to sue the North Terminal architect. The 
opinion was that he could not be sued until he was fired, so he was 
fired. Nine years have past and he still hasn't been sued. 

Mr. Garibaldi responded that the suit is pending. Those types of 
lawsuits tend to drag on. 

Commissioner Stephens said that cases had to be brought to trial 
within five years. 

Mr. Garibaldi said that this case will be brought to trial within the 
time limit. He explained that there was a stipulation entered into 
that no suit would be filed so long as that particular architectural 
firm was rendering service to the Airport. We did not want to be in 
a position of conflict with the architect so the statute of limita- 
tions was waived. The suit was filed about two years ago. 

Commissioner Goosby said that if the City Attorney opines that 
Gensler is liable the Airport will then be reimbursed but the work 
will already have been done. 

Mr. Bouey pointed out that he and Jason Yuen work closely together. 
Essentially, Jason acts as the builder and he acts as the owner of 
the building and he does not accept the building until he is 

Minutes, August 4, 1987, Page 7 



completely satisfied. He said that those 400 items contained minor 
problems such as a door not being hung right to the problem currently 
before the Commission. He said that under the best of circumstances, 
if Jason had not had another project that had to be done on time and 
on budget these projects would have been completed. He said he did 
not want to lose out on the statute of limitations and this work has 
to be done. 

Commissioner Goosby said that the International Terminal was 
completed under budget and asked if the remaining money from that 
fund had been set aside, and, if so, would the cost of this item 
bring the International Terminal up to budget. 

Mr. Bouey responded that there is money remaining in that bond fund. 

Mr. Jason Yuen, Administrator, Bureau of Planning and Construction, 
responded that when the project came in under budget the account was 
closed and the money set aside. That account could be reopened. 

Commissioner Goosby asked if we would still be under budget. 

Ms. Gittens responded that she would get the answer to Commissioner 
Goosby. 



Selection of Law Firm to Handle Airport Personnel Litigation Matters 

No. 87-0163 Resolution authorizing and directing 

the Director of Airports to enter Into 
agreement with a law firm to provide 
advice and counsel with respect to 
personnel matters, to represent 
management in disciplinary proceedings 
and to handle litigation relating to 
personnel matters, the maximum 
compensation payable under said 
agreement not to exceed $50,000. 

Commissioner Stephens made a motion that the firm of Hanson, 
Bridgett, Marcus, Vlahos and Rudy be retained to represent the 
Airport and that the head of the labor relations division of that 
firm meet with Commissioner Fleishell to discuss any conflicts they 
might have, as well as staffing. 

Commissioner Bernstein agreed. 

Commissioner Goosby seconded the motion. 

Mr. Art Pulaski, Airport Labor Coalition, recognized the Commission's 
work towards achieving a positive labor relationship with the unions. 
He said he appreciated those efforts and thanked the Commission. 



CONSENT CALENDAR OF ROUTINE ADMINISTRATIVE MATTERS: 

The following items were unanimously adopted. 

8. Tenant Improvement: 

United Airlines First Class Check-In Area 
T-3293 - $50,000 - No Cost to City 

No. 87-0164 

Minutes, August 4, 1987, Page 8 



9. Bid Call: Contract No. 1976 
Silt Removal - 1987 

No. 87-0165 



Resolution approving the scope, budget 
and schedule for Airport Contract No. 
1976 and authorizing the Director of 
Airports to call for bids when ready. 



10. Bid Call : Contract No. 1943 

Material & Equipment Replacement, Cable 1 2AM- 1 



No. 87-0166 



Resolution approving the scope, budget 
and schedule for Contract No. 1943 and 
authorizing the Director of Airports 
to call for bids when ready. 



11. Type II Modification: Contract No. 824 
Taxiway Centerline Lighting 



No. 87-0167 



Contract modification of $73,855.39 to 
provide for overrun of certain bid 
items due to changes in the scope of 
the work. Original Contract Amount: 
$1,885,365.00. 



12. Close-out Contract 1414AB, Boarding Area 'B' Renovation, and Fix 
Final Contract Price at $19,305,736.63 



No. 87-0168 



Final modification to close-out 
contract including adjustments to Bid 
Items and Force Account payments in 
accordance with City's administrative 
code and extension of time for weather 
delay. Total adjustment: $198,817.63. 
Neither City nor contractor has claim 
against the other. 



13. The Parry Contract 
No. 87-0169 



Contract for the Parry Company to 
produce four noise impact area 
contours to be used on the Quarterly 
Report and at the Airport Roundtable. 
The contract also provides for the 
appearances by representatives of the 
Parry Company to substantiate the 
noise contours. ($30,000.00) 



14. Extend Roofing Consultant Simpson, Gumpertz and Heger, Inc.'s 
Contract to May 30, 1988 at No Additional Cost 

No. 87-0170 



Minutes, August 4, 1987, Page 9 



15. Naming of Road R-2 and Renumbering of Airport Buildings 
No. 87-0171 



16. Approval of Claims Settlement 



No. 87-0172 



Resolution approving the settlement of 
claims not exceeding $2,500.00 for the 
period January to June, 1987. Total 
Claims: $5,780.36 



I. CORRESPONDENCE: 

There was no discussion by the Commission. 



ADJOURNMENT: 

There being no further calendared business before the Commission the 
meeting adjourned at 9:45 AM. 



JeaffTLaramatti 
Commission Secretary 




Minutes, August 4, 1987, Page 10 



SAN FRANCISCO 
AIRPORTS COMMISSION 




MINUTES 



DOCUMENTS DisPT. 

SEP 9 19B7 

SAN FKAWCii>«JO 
P'lRUC UBRARv 



& AUGUST 18, 1987 



DIANNE FEINSTEIN, MAYOR 

COMMISSIONERS 

MORRIS BERNSTEIN 

President 

J. EOWARD FLEISHELL 

VIct-Presldent 

OR. Z.L. GOOSBY 

ATHENA TSOUGARAKIS 

DON RICHARDS STEPHENS 



LOUIS A.TURPeiM 

Director off Airports 

San Francisco International Airport 
San Francisco, California 94128 



Index 

of the Minutes 

Airports Commission 

August 18, 1987 



CALENDAR 
SECTION 



AGENDA 
ITEM 



TITLE 



RESOLUTION 
NUMBER 



PAGE 



CALL TO ORDER: 



ROLL CALL: 



ADOPTION OF MINUTES: 

Regular meeting of 
July 21, 1987 



87-0173 



D. 



DIRECTOR'S REPORTS: 

Progress Report on the 1-380 
Highway Construction Program 



E. 



ITEMS INITIATED BY COMMISSIONERS: 
Noise Abatement 



POLICY: 

Recommended Policy Changes for 
Commission Agenda Items 87-0174 



4-5 



ITEMS RELATING TO ADMINISTRATION, 
OPERATIONS & MAINTENANCE: 

3. Waiver of Conflict of Interest of 
Hanson, Bridgett, Marcus, Vlahos 

& Rudy Law Firm 87-0175 

4. Electronic Security Door System 
Project - $2-Mi 1 1 ion 87-0176 

5. Tenant Improvement: Hilton 
Renovation and Landscaping 

Plot 2 - T-3297 - $2.4-Million - 
$300,000 Rental Credit 87-0177 



5-8 
8-9 



CONSENT CALENDAR OF ROUTINE 
ADMINISTRATIVE MATTERS: 

Retirement Resolution: 
James W. Jenkins 



87-0178 



10 



7. Modification of Professional 
Services Agreement - Sequoia 

Analytical Laboratory, Inc. 87-0179 10 

8. Resolution Approving Sublease 
by Pan American World Airways 

to Pacific Southwest Airlines 87-0180 10 

9. Resolution Exercising Options 

and Establishing New Rental 87-0181 

Rates - Plots 12, 12A and 12B 87-0182 10 

10. Travel/Training Authorization 87-0183 10 



PUBLIC HEARING: 

11. Public Hearing: Fiscal Year 

1987/88 Rates & Charges 10-11 



CORRESPONDENCE: 11 



ADJOURNMENT TO GO INTO 

CLOSED SESSION: 11 



Minutes, August 18, 1987, Page 2 



Minutes 

of the 

Airports Commission Meeting 

August 18, 1987 



A. CALL TO ORDER: 

The regular meeting of the Airports Commission was called to order at 
9:00 A.M. in Room 282, City Hall, San Francisco, Ca. 



ROLL CALL: 

Present: Morris Bernstein, President 

J. Edward Fleishell, Vice President 
Z. L. Goosby 
Athena TsougaraMs 
Don Richards Stephens 



ADOPTION OF MINUTES: 

The minutes of the regualr meeting of July 21, 1987 were adopted by order 
of the Commission President. 

No. 87-0173 



DIRECTOR'S REPORTS: 

1 . Progress Report on the 1-380 Highway Construction Program 

This is a six-month update of the 
1-380 construction status. 

Mr. Lou Turpen, Airport Director, said that the 1-380 Interchange 
program is coming to conclusion and within the next three months the 
direct access to 1-380 and the direct access from 1-380 onto the 
Airport will be completed. CalTrans will have a ribbon-cutting 
ceremony to commemorate the completion of the project. 



ITEMS INITIATED BY COMMISSIONERS: 

Commissioner Stephens said that he does not have a clear understanding of 
the noise abatement information the Commission has been receiving. He 



Minutes, August 18, 1987, Page 3 



asked staff to prepare a brief memo explaining the reasons for it, what's 
been done, what kind of reaction we are currently getting and what kind of 
reaction we expect to get from the FAA. He then asked for a synopsis of 
the mail that has been received both for and against it. 

Commissioner Goosby agreed. 

Mr. Turpen asked Commissioner Stephens if he was referring to the specific 
dispute with the FAA or the noise regulation. 

Commissioner Stephens said he was referring to the noise regulation. He 
asked if the Commission could receive the memo before the next meeting. 

Mr. Turpen responded that the comment period has been closed so staff 
could present it to the Commission at the first meeting in September. 

Commissioner Stephens said It was not necessary to place 1t on the agenda. 

Mr. Turpen said an informal memo would be prepared. 



POLICY: 

The following item was unanimously adopted as amended. 

2. Recommended Policy Changes for Commission Agenda Items 

No. 87-0174 

Mr. Turpen said that this matter was brought before the Commission at 
the suggestion of Commissioner Stephens who asked him to review some 
of the more routine matters that were coming before the Commission. 
He said that the items staff is proposing in this policy do not have 
to come before the Commission as routine matters. He said it was a 
different matter when the Airport was involved in the major part of 
its development program but at this time most of the Items before the 
Commission are fairly straightforward. In the Interest of becoming 
more efficient that these items could be deleted from the routine 
Commission calendar. He said that the Commission can accept all or 
any part of these items. 

Commissioner Goosby said he did not have a serious problem with the 
first five items, although he felt that all information should be 
available to the Commission, but he disagreed with Item six, the 
routine concession contracts. He said that this Is the Commission's 
only input in the entire bid process. 

Commissioner Stephens agreed with what has been presented but what he 
really wants to see is the most important and controversial Items 
placed first in the event a Commissioner must leave the meeting. He 
said he agreed as long as the Commission continues to receive the 
same amount of information on concessions and on items the Commission 
passes by consent. In that way Commissioners will still be able to 
comment and express their concerns. 

Commissioner Goosby asked that item 6 be removed from the resolution. 

The Commission agreed. 

Mr. Turpen told the Commission that there are two classes of 
concession activity at the Airport, those that demand a lot of 

Minutes, August 18, 1987, Page 4 



attention and those that are routine, i.e. where an existing 
concession is being bid again under the same terms and conditions. 
It is those routine items that will fall under category six. 

Commissioner Tsougarakis suggested a routine report on those matters 
that will no longer appear before the Commission. 



ITEMS RELATING TO ADMINISTRATION, OPERATIONS & MAINTENANCE: 

Item No. 3 was adopted as amended by a 3-2 vote with Commissioners Goosby 
and Tsougarakis casting the dissenting votes. 

3. klaiver of Conflict of Interest of Hanson, Bridgett, Marcus, Vlahos & 
Rudy Law Firm 

No. 87-0175 Commission to consider the waiver of a 

Conflict of Interest in hiring of 
Hanson, Bridgett, Marcus, Vlahos & 
Rudy. 

Commissioner Fleishell said that at the last meeting he was asked to 
investigate this firms conflicts. He talked to the firm and to Mr. 
Garibaldi and apparently the only technical conflict this firm has 1s 
that they handle labor relations for one of Mr. Leonoudakis's bus 
companies and that, in itself, is not a true conflict of interest. 
He said that this type of conflict Is not unusual. Commissioner 
Fleishell said that Mr. Garibaldi did not feel that this conflict 
presented an impediment and he moved that the conflict be waived. 

Mr. Garibaldi said that the Airport received another letter from the 
firm indicating that there were several conflicts. 

Commissioner Fleishell asked if that letter caused Mr. Garibaldi to 
change his feelings. 

Mr. Garibaldi responded that 1t is still a conflict and it Is up to 
the Commission to decide whether or not It should be waived. The 
other conflict is their representation of the City of Mountain View 
in a suit against the City and County of San Francisco and the 
sanitary land fill. He explained that the firm discovered this 
conflict after they wrote the first letter. 

Commissioner Stephens said that large firms have conflicts. A firm 
like Hanson, Bridgett is not going to compromise themselves by 
allowing a conflict to get in the way of good representation. 

Commissioner Tsougarakis said that she wouldn't argue the point but 
she felt that if we don't address this issue now and we run Into 
problems with these lawsuits it will look bad. She said It Isn't 
that there's anything wrong with the law firm, it's the notion that 
these conflicts have arisen and we are likely to get nailed. 

Commissioner Tsougarakis asked how much trouble this L.A. law firm 
was and if this was worth it. 

Mr. Turpen responded that the L.A. law firm was not working out. 
Those reasons have already been discussed with the Commission. Three 
other firms were looked at and one of those firms was of some concern 
to the community. That firm was withdrawn and staff made a recommen- 
dation on the remaining two firms. He said he was not qualified to 
comment on this specific firm. 

Minutes, August 18, 1987, Page 5 



Commissioner Goosby said that this firm was not one of the remaining 
two. 

Mr. Turpen said that it was not. He said he has looked at the infor- 
mation concerning the waiver and has talked to the City Attorney 
about it. He recommends going with another firm due to Hanson, 
Bridgett's involvement in the prevailing wage development and the 
fact that they represent SFO Airporter. He explained that the firm 
we engage is going to be involved in Airport Police discipline and 
the Police deal with SFO Airporter. Lastly, the fact that they are 
involved in a lawsuit against the City and County of San Francisco 
further suggests that there is no reason to pursue this firm when 
there are other firms that are equally qualified. He added that the 
City Attorney has interviewed those firms and determined that they do 
not have an apparent conflict. 

Commissioner Flei shell asked who the other firms were. 

Mr. Garibaldi said that they are Witmore and Kay, a Palo Alto based 
firm that does public agency employment-type work exclusively, and, 
Corbett and Cain, a San Francisco firm also handling employment-type 
work. He said that their principle client is the University of 
Cal ifornia. 

Commissioner Goosby said that these two firms were on the original 
list. The third firm on that list was rejected due to union 
opposi tion. 

Commissioner Stephens said that he would be in favor of approving 
this firm with the stipulation that the Commission does not want any 
of the lawyers who are working on either the SFO Airporter case, the 
Mountain View case, or any other conflict to work on our Issue. 

Commissioner Goosby said that even before he read this latest letter 
from the City Attorney he felt that there were too many conflicts or 
possible conflicts for him to approve this firm. On the basis of 
principle alone he felt that this Commission would look as if 1t were 
not protecting the rights of the Airport, insplte of what the law 
firm claims. He said that they are not the only firm in town and 
felt it would be better if the Commission found another firm. He 
said he would vote against the waiver. 

Commissioner Tsougarakls felt that the Commission would regret this. 

Commissioner Bernstein asked Mr. Garibaldi if there was a conflict. 

Mr. Garibaldi responded that there were several conflicts, as Hanson, 
Bridgett pointed out in their correspondence. 

Commissioner Bernstein asked what the City Attorney recommended. 

Mr. Garibaldi responded that his office does not recommend outside 
law firms. He explained that there are conflcts that the Commission 
is free to waive or not waive, as they see fit. 

Commissioner Goosby said that George Agnost used to go out of his way 
to recommend an outside firm and the Commission would take offense. 

Commissioner Fleishell said that Mr. Garibaldi told him that this was 
a technical conflict but not a real conflict and could be waived so 
for that reason he went along it. 

Mr. Garibaldi responded that that conversation took place before the 
letters were received. He said that what Commissioner Fleishell 



Minutes, August 18, 1987, Page 6 



described to him was a conflict but not a major one. The letter that 
was subsequently received had more detail than their conversation 
revealed. 

Commissioner Tsougarakis said she had a problem with hiring a law 
firm who is representing someone suing the City. She did not 
understand how a law firm could represent both sides. 

Commissioner Fleishell said that the Airport has already hired 
several law firms who have sued the City while representing us. 

Commissioner Tsougarakis said she would like to know about It if that 
has happened. 

Commissioner Bernstein said he does not want to see a 3-2 vote on 
this issue. 

Commissioner Goosby said it looks bad to the public to see a 
Commission bend over backwards this way to accept this firm when 
there are other firms available that have no conflicts. 

Commissioner Bernstein asked if this item could be put over for two 
weeks. 

Mr. Turpen responded that it has already been put over for four 
weeks. There are legal matters pending and it would be helpful to 
move this item. 

Commissioner Tsougarakis said that if the Commission votes against it 
staff won't be able to proceed anyway. 

Mr. Turpen responded that the Commission can always select one of the 
two firms recommended by staff. 

Commissioner Tsougarakis said she would ask for this same statement 
from any other firm. 

Mr. Garibaldi told the Commission that staff has talked to the other 
firms and they have not Indicated any conflicts. 

Commissioner Fleishell said that staff talked to this firm and they 
had not indicated any conflict either. 

Mr. Garibaldi said that he talked to the firm and they were not aware 
of any confl icts. 

Commissioner Fleishell asked who produced their name. . 

Commissioner Tsougarakis said that the Commission produced the name. 

Commissioner Fleishell said that staff interviewed them. 

Mr. Garibaldi said that he talked to the labor side of the firm and 
they were not aware of any conflict. It became apparent that there 
was a conflict at the Commission meeting and that is why the motion 
was made directing Commissioner Fleishell to check with the firm to 
determine if there was a conflict and, if so, what the nature of It 
was. He said that the letters from the firm were received after the 
last Commission meeting. 

Commissioner Fleishell said that there should be a policy that 
requires any law firm interviewed by the City Attorney to submit a 
written statement indicating that no conflicts exist. 



Minutes, August 18, 1987, Page 7 



Commissioner Bernstein asked that this item be put over for two weeks. 

Commissioner Stephens asked what will happen in two weeks to change 
this. 

Commissioner Bernstein responded that he did not want to see a split 
vote and he wanted to satisfy himself on this issue. 

Commissioner Tsougarakis said she would like to see a resolution with 
the name of another firm. 

Commissioner Goosby agreed with Commissioner Tsougarakis. 

Mr. Turpen said that the last resolution presented to the Commission 
offered the names of three law firms, two of which have been Inter- 
viewed by the City Attorney and both are acceptable to the City 
Attorney and the Airport staff. He said that any of the firms would 
have been acceptable but staff did select one and recommended It to 
the Commission. He said he did not know how this firm's name came up. 

Commissioner Tsougarakis said she did not know either. 

Commissioner Goosby asked if this firm was on the original list 
submitted to the Commission and, if not, how it came to the 
Commission. 

Commissioner Tsougarakis thought it came from the Commission. 

Mr. Garibaldi said that he thought the firm might have been one of a 
long list of firms but had not been interviewed. 

Commissioner Goosby said he did not see any point in putting It over. 
Chief Driscoll can't move on his personnel matters until a decision 
is made. He felt it was important to move ahead and said he would 
abide by the decision of the Commission, with no hard feelings. 

Mr. Garibaldi said that the understanding is that the resolution Is 
amended to include the conflict statement. 

Commissioner Bernstein asked if there was any way of checking these 
conflicts in advance. 

Mr. Garibaldi responded that In the future he will get firms to state 
any conflicts that they are aware of as soon as possible. 

Commissioner Stephens added that it should also be stipulated that 
they have different lawyers working on our case. 



Items 4 and 5 were unanimously adopted. 

4. Electronic Security Door System Project - $2-M1 1 1 i on 

No. 87-0176 Resolution authorizing the addition of 

the Electronic Security Door System 
Project to the Airport's Five-Year 
Capital Projects Plan. 

Mr. Turpen said that this is part of the Airport's overall security 
enhancement program. It involves an electronic security system for a 
significant number of doors which lead from the terminal area onto 
the airfield. 



Minutes, August 18, 1987, Page 8 



Mr. Dennis Bouey, Deputy Director, Facilities Operations and 
Maintenance, said that there are 140 such doors. 

Mr. Turpen said that the program has been reviewed repeatedly with 
the airlines and although they have indicated some concern they have 
agreed to it. Staff feels it is an important program for the future. 
With the number of field access points in the terminals it is 
important that we have an effective way of monitoring them. 

Mr. Bouey explained that each employee will be given a card 
containing a microchip which will be programed to open only certain 
doors during certain hours. It will also have an anti-pass back 
feature, which means that only one person can go through the door on 
that key. The current system Is a combination lock which some 
employees write on the walls. He said that he has a painter who does 
nothing but paint out combinations that people are too lazy to 
remember. All security doors currently have panic hardward but If 
someone breaches these doors we have no idea of who is actually out 
on the airfield. With the new system, in the event a security door 
is breached a closed circuit television will track that Individual. 

Commissioner Stephens presumed that if someone is fired from the 
Airport their card can be deactivated. 

Mr. Bouey said that even if the employee does not return the card it 
will simply be keyed out and will no longer be read by the computer. 
He said that the system will also read false feeds, meaning that if 
someone attempts to use the card at an unauthorized time or place the 
computer will run a program and tell us to whom the card belongs. 

Commissioner Goosby asked if this was being funded through a bond 
fund. 

Mr. Bouey responded that that is generally true of all the projects 
his division handles, however, a substantial portion, including this 
project, are funded by AIP or ADAP grants. In this case, the front 
money is bond money and the Airport gets 75% of it back. 

Commissioner Goosby remarked that the FAA is holding up grant money. 

Mr. Turpen responded that the airlines will then foot the bill. 

Commissioner Goosby asked if the airlines realized this when they 
granted their approval. 

Mr. Turpen said that they have already fronted the money. He 
explained that the FAA only deals with reimbursement so the Airport 
must generate the revenue before any reimbursement is received. 

Mr. Bouey mentioned that if we don't get these funds he will have to 
reevaluate a substantial portion of the Airport's Five Year Plan and 
this might be one of the projects to be shelved. He said that his 
staff presents projects amounting to $60-$70-mi 1 1 ion worth of work. 
He pares that list down and then it goes to the Airline Affairs 
Committee where it is again pared down. By the time It appears 
before the Commission it has already gone through several reviews. 



Tenant Improvement : 

Hilton Renovation and Landscaping 

Plot 2 - T-3297 - $2 . 4-M1 1 1 i on - $300,000 - Rental Credit 

No. 87-0177 

Minutes, August 18, 1987, Page 9 



H. CONSENT CALENDAR OF ROUTINE ADMINISTRATIVE MATTERS: 

The following items were unanimously adopted. 

6. Retirement Resolution : 
James kl. Jenkins 

No. 87-0178 



Modification of Professional Services Agreement 
Sequoia Analytical Laboratory, Inc . 

No. 87-0179 Resolution modifying the contract 

amount from $25,000 to $45,000; an 
increase of $20,000; to cover 
increased work load. 



Resolution Approving Sublease by Pan American World Airways to 
Pacific Southwest Airlines 

No. 87-0180 Resolution approving the sublease of a 

portion of Plot 1C, by Pan American 
World Airways to Pacific Southwest 
Airl ines. 



Resolution Exercising Options and Establishing New Rental Rates - 
Plots 12, 12A and 12B 

No. 87-0181 Resolutions exercising options and 

No. 87-0182 establishing new rental rates for 

Airport Plots 12 and 12B, lease PUC 
67-0214; and Airport Plot 12A, lease 
PUC 67-0980. 



10. Travel/Training Authorization 
No. 87-0183 



I. PUBLIC HEARING: 

The public hearing was opened at 9:32 AM and closed at 9:33 AM, there 
being no public comment. 

11 . Public Hearing: Fiscal Year 1987/88 Rates and Charges 

Public Hearing concerning the 
establishment of (1) terminal rental 
rates and (2) commercial and general 

Minutes, August 18, 1987, Page 10 



aviation landing fee rates for Fiscal 
Year 1987-88 and beyond. 



J. CORRESPONDENCE: 

There was no discussion by the Commission 



* * * 



L. ADJOURNMENT TO GO INTO CLOSED SESSION: 

There being no further calendared business before the Commission the 
meeting adjourned at 9:34 AM to go into closed session. 





HuJq 



;an Caramattl 
Commission Secretary 



Minutes, August 18, 1987, Page 11 



SAN FRANCISCO 
AIRPORTS COMMISSION 




MINUTES 



g£, SEPTEMBER 1, 1987 



DOCUMENTS DEPT. 

SEP 3 *'«**' 



DIANNE FEINSTEIN, MAYOR 

COMMISSIONERS 

MORRIS BERNSTEIN 

President 

J. EOWARO FLEISHELL 

Vice-President 

DR. Z.L. GOOSBY 

ATHENA TSOUGAR AKIS 

DON RICHARDS STEPHENS 



LOUIS A.TURPEfM 

Director of Airports 

San Francisco International Airport 
San Francisco, California 94128 



Index 

of the Minutes 

Airports Commission 

September 1 , 1987 



CALENDAR AGENDA RESOLUTION 

SECTION ITEM TITLE NUMBER PAGE 



A. ROLL CALL: 3 

B. CALL TO ORDER: 3 



ADOPTION OF MINUTES: 

Regular meetings of: 

August 4, 1987 3 

August 18, 1987 3 



DIRECTOR'S REPORTS: 

Report on Regional Planning 

Committee/Airport Land Use 

Ccmmission Meeting on Working 

P oer 'A' , Master Plan 3-4 



ITEMS INITIATED BY COMMISSIONERS: 



ITEMS RELATING TO ADMINISTRATION, 
OPERATIONS & MAINTENANCE: 

Award of Contract No. 1427: 
McDonnell Road - Reconstruction 
and Traffic Signals Installa- 
tion 

Approval of Easement Agreement - 
U.S. Coast Guard 



G. CONSENT CALENDAR OF ROUTINE 

ADMINISTRATIVE MATTERS: 

4. Adoption of Fiscal Year 1987/1 
Rates & Charges 

5. Rejection of All Bids: 
Contract No. 1976 - Silt 
Removal - 1987 

6. Award of Contract No. 1557: 
Extension of Taxiway 'M' and 
Overlay of Taxiway ' F' 



7. Award of Contract No. 1877: 
Emergecy Pavement Repairs 
1987/88 5 



H. CORRESPONDENCE: 5 



ADJOURNMENT TO GO INTO 
CLOSED SESSION: 



Minutes, September 1, 1987, Page 



Minutes 

of the 

Airports Commission Meeting 

September 1 , 1987 



CALL TO ORDER: 

The regular meeting of the Airports Commission was called to order at 
9:00 A.M. in Room 282, City Hall, San Francisco, Ca. 



B. ROLL CALL: 

Present: Morris Bernstein, President 

J. Edward Fleishell, Vice President 
Z. L. Goosby 
Athena Tsougaraki s 
Don Richards Stephens 



C. ADOPTION OF MINUTES: 

The minutes of the following regular meetings were adopted by order of the 
Commission President: 

No. 87-0184 August 4, 1987 

No. 87-0185 August 18, 1987 



D. DIRECTOR'S REPORTS: 

1 . Report on Regional Planning Committee/Airport Land Use Commission 
Meeting on Working Paper 'A', Master Plan - Oral Report 

Mr. Lou Turpen, Airport Director, told the Commission that there was 
a public meeting sponsored by the San Mateo Regional Planning 
Committee and the Airport Land Use Commission concerning the Master 
Plan, Working Paper 'A', the forecast paper to which the Commission 
was previously exposed. He said that the meeting lacked a quorum as 
only eight of the 21 agencies were represented (Brisbane, Daly City, 
Foster City, Menlo Park, Millbrae, Pacifica, San Bruno and San Mateo 
County.) Fifteen people of the 30 present offered comments; seven 
comments were about noise, four were about ground transportation, 
four were about the validity of the forecasts and two were about the 
West of Bayshore property. He said that the public's comments were 
positive and staff will review and distill them for insertion into 
the next quarterly report. Staff will go back before the RPC/ALUC at 
each benchmark date after review with the Airport. 

Commissioner Goosby asked who commented about the West of Bayshore. 
Minutes, September 1, 1987, Page 3 



Mr. Turpen responded that one came from a private citizen and the 
other was the City of Mi librae. 



E. ITEMS INITIATED BY COMMISSIONERS: 

There were no items initiated by Commissioners 



Items 2 through 7 were called together and unanimously adopted. Item No. 
3 received the only comments. 

ITEMS RELATING TO ADMINISTRATION, OPERATIONS & MAINTENANCE: 

2. Award of Contract No. 1427 : 
McDonnell Road 
Reconstruction and Traffic Signals Installation 

No. 87-0186 Resolution awarding Contract No. 1427 

to Ghilotti Bros., Inc., in the amount 
of $1 ,082,445.00. 



3. Approval of Easement Agreement - U.S. Coast Guard 

No. 87-0187 

Commissioner Goosby said that the bidders did not object to all bids 
being rejected as all the bids were over the budget. 



CONSENT CALENDAR OF ROUTINE ADMINISTRATIVE MATTERS: 

4. Adoption of Fiscal Year 1987/88 Rates and Charges 

No. 87-0188 Resolution authorizing the establish- 

ment of (1) terminal rental rates, and 
(2) commercial and general aviation 
landing fee rates for Fiscal Year 
1987/88 anJ beyond. Resolution also 
authorizes a $5,700,000 supplemental 
appropriation from unappropriated 
surplus to the operating fund, as 
required by the Lease and Use 
Agreement. 



5. Rejection of All Bids : 

Contract No. 1976 - Silt Removal - 1987 

No. 87-0189 Resolution rejecting the three bids 

received for Contract No. 1976. 



Minutes, September 1, 1987, Page 4 



Award of Contract No. 1557 : 

Extension of Taxiway 'M' and Overlay of Taxi way 'F' 

No. 87-0190 Resolution awarding Contract No. 1577 

to O'Grady Paving, Inc., in the amount 
of $1,528,750.00. 



Award of Contract No. 1877 : 
Emergency Pavement Repairs 1987/88 

No. 87-0191 Resolution awarding Contract No. 1877 

to Lowrie Paving Co., Inc., in the 
amount of $132,000.00. 



H. CORRESPONDENCE: 

There was no discussion by the Commission 



J. ADJOURNMENT TO GO INTO CLOSED SESSION: 

There being no further calendared business before the Commission the 
meeting adjourned at 9:05 AM to go into closed session. 



1 y /< i 

Jean Caramatti 
Commi ssion Secretary 



Minutes, September 1, 1987, Page 5 






SAN FRANCISCO 
AIRPORTS COMMISSION 




DOCUMENTS DEPT, 

nov 5 mr 

SAN FRAfMCi^cO 
^•'«LIC l.lp»«»v 



MINUTES 



SEPTEMBER 15, 1987 



DIANNE FEINSTEIN, MAYOR 

COMMISSIONERS 

MORRIS BERNSTEIN 

President 

J. EOWARD FLEISHELL 

VlctPr«sld«nt 

DR. Z.L. GOOSBY 

ATHENA TSOUGARAKIS 

DON RICHARDS STEPHENS 

LOUIS A.TURPEfNJ 

Director off Airports 

San Francisco International Airport 
San Francisco, California 94128 



Index 

of the Minutes 

Airports Commission 

September 15, 1987 



CALENDAR AGENDA RESOLUTION 

SECTION ITEM TITLE NUMBER PAGE 



CALL TO ORDER: 
ROLL CALL: 



ADOPTION OF MINUTES: 

Regular meeting of 
September 1 , 1987 



SPECIAL ITEM: 

1. Election of Officers 3-4 

DIRECTOR'S REPORTS: 

2. Ground Transportation 

Consultant 4 

3. Termination of Shoeshine 
Concession, International 

Terminal 4-5 

4. Electronic Information Service 5-6 
ITEMS INITIATED BY COMMISSIONERS: 6 

PENDING LEGISLATION: 

5. Report on SB 1067 - 6-7 



ITEMS RELATING TO ADMINISTRATION, 
OPERATIONS & MAINTENANCE: 

Resolution Awarding Boarding 
Area 'E' Retail Concession 
Lease 



CONSENT CALENDAR OF ROUTINE 
ADMINISTRATIVE MATTERS: 

7. $1 ,076,860 Supplemental Appro- 
priation to Increase the 
Fiscal Year 1986/87 Annual 
Service Payment 



8. Award of Contract No. 1976R: 

Si It Removal - 1987 8 

9. Extension of Professional 
Services Agreement with Marquis/ 
Wong & Brocchini & Associates 
for the Reconstruction of South 

Terminal 8-9 

10. Amendment No. 1 to Professional 
Services Agreement with Del Campo 
& Maru, Architects, to Provide 
Additional Services for Delta's 
Facilities at Boarding Area 'C - 

No Cost to Airport 9 

11. Final Modification and Close-Out 
of Contract 1200BC4), Central 

Terminal Modernization - 9 

$150,000 

12. Request for Travel/Training 

Authorization 9 



CORRESPONDENCE: 9 



ADJOURNMENT TO GO INTO CLOSED 
SESSION: 



Minutes, September 15, 1987, Page 2 



Minutes 

of the 

Airports Commission Meeting 

September 15, 1987 



CALL TO ORDER: 

The regular meeting of the Airports Commission was called to order at 
9:00 A.M. in Room 282, City Hall, San Francisco, Ca. 



B. ROLL CALL: 

Present: 

Absent: 



Morris Bernstein, President 

J. Edward Fleishell, Vice President 

Z. L. Goosby 

Athena Tsougarakis 

Don Richards Stephens 



ADOPTION OF MINUTES: 

The minutes of the regular meeting of September 1, 1987 were adopted by 
order of the Commission President. 

No. 87-0202 



D. ANNOUNCEMENT BY SECRETARY: 



In accordance with Section 54957.1 of 
the Brown Act, Jean Caramatti , 
Commission Secretary announced 
unanimous adoption of resolution no. 
87-0192 regarding the settlement of a 
claim at the closed session of 
September 1, 1987 and resolution no. 
87-0193 Instructing legal counsel to 
reject the settlement offer of the 
Federal Aviation Administration at the 
closed session of September 10, 1987. 



E. SPECIAL ITEM: 

1 . Election of Officers 

Commissioners Tsougarakis moved the nomination of Commissioner Morris 



Minutes, September 15, 1987, Page 3 



Bernstein as President. Commissioner Goosby amended the motion to 
include the nomination of Commissioner J. Edward F1 e i she 1 1 as Vice 
President. 

The vote to elect Commissioner Morris Bernstein as President and 
Commissioner J. Edward Fleishell as Vice President was unanimous. 

No. 87-0194 



F. DIRECTOR'S REPORTS: 

2. Ground Transportation Consultant - Verbal Report 

Ms. Angela Gittens, Acting Director, told the Commission that the 
contract for the Ground Transportation Consultant will be certified 
within a few days. She said that Mr. Grieg Harvey has met with 
Commissioner Bernstein and will be contacting each Commissioner 
individually to get their views and will also set up meetings with 
the various ground transportation operators at the Airport. 



3. Termination of Shoeshine Concession, International Terminal 

Report on termination of Use and Space 
Permit for William Davis Shoeshine 
operation in International Terminal 
Bui lding. 

Commissioner Bernstein said that he felt that there was room at the 
Airport for six or eight individually-owned shoeshine concessions. 
He suggested that those stands could be under staff's supervision so 
they would be done properly. 

Ms. Gittens said that the issue here is that passengers who are 
embarking on an overseas flight are not interested in getting thier 
shoes shined. The operator currently pays the owner $15.00 a day yet 
he only serves 15-25 customers in a day. 

Ms. Gittens reminded the Commission that there is a shoe shine 
service in the Barber Shop located in the North Connector. If the 
Commission wants individual stands, they will have to be located in 
the North and the South Terminals. She said that perhaps the next 
time they come up for rebidding they can be done on an individual 
basi s . 

Commissioner Bernstein thought that the Airport might be asking for 
too much money. 

Commissioner Fleishell said that the Airport should require a 
minority owner to operate his own business; we should not be allowing 
an absentee ownership situation. He also complained that the labor 
contractor pays his employees a percentage, not wages, so they have 
no social security benefits. 

Commissioner Fleishell did not feel a passenger would get a great 
shoe shine for $3.50. In any event, passengers coming in from 
overseas are not looking for a shoeshine, they are either going home 
or to another terminal to catch a connecting flight. He felt It was 
a mistake to install a shoeshine stand in the International Terminal 

Minutes, September 15, 1987, Page 4 



in the first place and that terminating the lease seems to make sense. 

Commissioner Fleishell asked that in the future the stand be owner- 
operated. 

Ms. Gittens told Commissioner Fleishell that staff did require the 
owner to operate the stand in the South Terminal but got the clear 
indication at the pre-bid conference that there would not be any bids 
under that concept. She said that staff could try it again next time. 

Commissioner Bernstein asked what the charge was for a shoe shine at 
the Airport. 

Ms. Gittens responded that it was anywhere from $3.00 to $3.50. She 
added that staff has received letters complimenting our shoeshine 
operations. 

Commissioner Fleishell said that many of the things we do at the 
Airport are done to provide a service to the public and a shoe shine 
stand is a service. The Airport should consider giving it to the man 
who shines the shoes at a very modest rent. He felt the operator 
would work harder, reduce the cost and get more business. 



Electronic Information Service - Teleguide 

Annual report on the Teleguide 
Information System at the Airport. 

Ms. Gittens said that the Commission asked staff to report back in 
September with an update on Teleguide and "You Are Here" services. 
Although Teleguide has been sold to GTE, they are still providing the 
service. The Airport received very high ratings in the last passenger 
survey on the question of finding your way around the Airport. She 
also stated that Airport maps are provided in addition to the 
Teleguide service. 

Ms. Gittens said that the issue is that the South Terminal's newly 
renovated areas do not have Teleguide services. Although she was not 
certain, she thought it would cost about $70,000 to Install the 
system throughout that terminal. They are looking for approval from 
the Commission to move ahead. 

Commissioner Fleishell moved Option One. 

Commissioner Goosby agreed. 

Commissioner Tsougarakis asked how soon it would be before Teleguide 
introduced the "You Are Here" map. 

Ms. Gittens responded that it is ready in the home office and looks 
very good the way it is set up. She did not know how long it will 
take to instal 1 . 

Mr. Peter Nardoza, Assistant Deputy Director, Business and Finance, 
responded that the system is ready and he believed it would take a 
matter of days. 

Commissioner Goosby asked why Teleguide continued to operate when 
they were losing money. 

Mr. Nardoza responded that a number of companies in the field believe 
that although they operate at a loss at this point, the future holds 



Minutes, September 15, 1987, Page 5 



potential. Such machines will eventually be found in hotel rooms 
where a tourist or a business person would be able to find out about 
plane reservations, theater tickets, etc. simply by using that 
machine. In that way the system begins to generate greater revenue. 
In this particular case GTE has folded the Teleguide operation into 
other information services that they provide so the loss suffered by 
the Teleguide system is subvented by the money that they make in 
other communication systems. They firmly believe that at some point 
down the road this will make money. 

Commissioner Fleishell said that the price of their ads is dependent 
upon the number of monitors they have in existence. He said that 
they have met resistence in the hotels because many of the services 
they offer are sold by the concierge and this would put the concierge 
out of business. 

Commissioner Fleishell said that they would be happy to put their 
machines in for free. He explained that the ad price for a newspaper 
is based on circulation; Teleguide's ad price is based on the number 
of monitors. 

Commissioner Tsougarakis said that Teleguide machines are in the 
Embarcadero area and are frequently used. 

Commissioner Fleishell called for a vote. 

Commissioner Goosby asked that a resolution be brought back before 
the Commission approving Option One, not wanting to break a precedent 
and vote on a Director's Report. 

Ms. Gittens said that a resolution will be placed on the Consent 
Calendar at the next Commission meeting. 



G. ITEMS INITIATED BY COMMISSIONERS: 

There were no items initiated by Commissioners 



H. PENDING LEGISLATION: 

5. Report on SB 1067 - Verbal Report 

Ms. Gittens said that SB 1067, introduced by Petris, proposes the 
prohibition of smoking on all intra-state bus, train and airplane 
trips. The bill further requires that 75 percent of all waiting 
areas in the Airport or other transportation terminals be designated 
as non-smoking. It also prohibits smoking on ticket lines and will 
require signs to that effect. She said that the Airport did not have 
an opportunity to take a position on this. It was passed by the 
Legislature and as of yesterday it was awaiting action by the 
Governor. The ATA is undertaking a last minute campaign to get this 
bill killed at the Governor's level. 

Commissioner Fleishell said that there was another bill on the 
Governor's desk limiting the right to hold executive sessions and 
asked if the Airport took a position on that. 



Minutes, September 15, 1987, Page 6 



Mr. Don Garibaldi, Airports General Counsel, responded that he 
thought the City as a whole may have taken a position on it but not 
the Airports Commission individually. 

Commissioner Goosby asked if the City lobbyist has been asked to send 
copies of bills being sent to other City departments to the Airport 
so that we can be kept up tp date with what is being communicated to 
the City. 

Ms. Gittens said that the Airport receives many of the bills but not 
all of them. The lobbyist tries to look at what would be of interest 
to the Airport. 

Commissioner Fleishell said that the Commission's new lobbyist was 
hired solely for the purpose of dealing with the underground tank 
issue; he was not hired to deal with other legislative issues. 

Commissioner Goosby said that if the lobbyist is communicating with 
the City, the Airport should be notified as well. 

Commissioner Tsougarakis asked if there was any way of determining 
the cost to the Airport in the event the Governor signs SB 1067 

Ms. Gittens did not think there would be any cost to the Airport. 
This bill simply designates non-smoking areas in the waiting areas 
and ticket lines and will require signs to that effect. Currently, 
less than 75 percent of the space is designated for non-smoking. 

Commissioner Goosby asked what restrictions would be added to the 
Brown Act. He indicated that he probably would have no objections. 

Ms. Gittens, referring back to SB 1067, said that the ATA would like 
the Airport to take a position in opposition to it. Staff has 
indicated that that would probably not happen. 

Commissioner Goosby said he would be in favor of the restriction. 

Commissioner Fleishell, referring back to the Brown Act, said that 
last year a bill was proposed which would modify the Brown Act and 
limit closed session discussions to pending litigation and prohibit 
discussions on potential litigation. He said that Ed Gerber called 
him the day before the hearing and they were able to get the bill 
amended. He said he called the Speaker and the Chairman of the 
Judiciary Committee, both of whom practice administrative law. He 
told them they would no longer be able to represent housing 
authorities and agencies to advise them of moves that must be made to 
prevent litigation. He said that a similar bill came down this year 
but he did not know the result. He asked that a copy of- that bill be 
sent to each member of the Commission. 

Ms. Gittens said that SB 633, introduced by Rogers, amends the State 
code to require that two members of the Airport Land Use Commission 
have an expertise in aviation rather than specifying that two members 
represent airports. That bill has been passed by the Legislature 
and is awaiting action by the Governor. Although the Commission's 
vote to oppose this legislation was forwarded to the Mayor's 
Legislative Committee, they never took any action on it. 

Commissioner Fleishell said that Quentin Kopp co-authored the bill. 



Minutes, September 15, 1987, Page 7 



I. ITEMS RELATING TO ADMINISTRATION, OPERATIONS & MAINTENANCE: 

The following item was unanimously adopted. 

6. Resolution Awarding Boarding area 'E' Retail Concession Lease 

No. 87-0195 Resolution awarding the Boarding Area 

'E' Retail Concession Lease to Duty 
Free Shoppers Limited Partnership. 

Ms. Gittens said that staff has been working on this since February, 
1986. The highest bidder was Duty Free Shoppers at $1 .34-mi 1 1 ion. 
They have been certified by the Human Rights Commission for an LBE 
preference. There were no minority or women business requirements in 
this last version of the bid package. 

Commissioner Goosby said that they must still conform to the HRC's 
hiring policy and they can operate all four areas as they see fit. 
He said that the Commission should send Duty Free a congratulatory 
letter indicating that the Commission hoped, in keeping with the 
City's ordinance and the Commission's policies, that Duty Free would 
try to sublease some of the space to minority/women vendors. If the 
Commission was reluctant to send such a letter he would send it as an 
individual. He said that Duty Free's representatives have been to 
enough of these meetings to know what the Commission would like to 
see. 

Commissioner Goosby said that Duty Free voluntarily tried to do this 
when they won the principle concession in the North Terminal. They 
tried to accommodate the City and its ethnic balance in dividing 
those slots. He wanted to thank them for doing it then, congratulate 
them for winning the award and urge Duty Free to involve themselves 
in this type of consideration and implementation. 



CONSENT CALENDAR OF ROUTINE ADMINISTRATIVE MATTERS: 

The following items were unanimously adopted. 

7. $1,076,860 Supplemental Appropriation to Increase the Fiscal Year 
1986/87 Annual Service Payment 

87-0196 Authorization to request a $1,076,860 

supplemental appropriation from the 
Mayor to increase the annual service 
payment due to Increased concession 
revenues. 



Award of Airport Contract No.l976R 
Silt Removal - 1987 

No. 87-0197 Resolution awarding Contract No. 1976R 



9. Extension of Professional Services Agreement with Marquis/Hong & 
Brocchini Associates for the Reconstruction of South Terminal 

No. 87-0198 Under terms of the contract, 

Commission has option to extend 

Minutes, September 15, 1987, Page 8 



contract for 12 months to December 31, 
1988. Extension is required for 
services during close-out of project, 
and for punch list and warranty work - 
$56,000 budget. 



10. Amendment No. 1 to Professional Services Agreement with Del Campo & 
Maru, Architects, to Provide Additional Services for Delta's 
Facilities at Boarding Area 'C - No Cost to Airport 

No. 87-0199 Additional work is required due to the 

Delta/Western merger. Additional fee 
of $100,000 will be reimbursed by 
Delta. 



11 . Final Modification and Close-Out of Contract 1200B (4). 
Central Terminal Modernization - $150,000 

No. 87-0200 Final modification to resolve extra 

costs to electrical subcontractor 
related to unforeseen conditions. 
Contract to be closed out at 
$25,799,385.97. 



2. Request for Travel /Training Authorization 
No. 87-0201 



K. CORRESPONDENCE: 

There was no discussion by the Commission, 



M. ADJOURNMENT TO GO INTO CLOSED SESSION: 

There being no further calendared business before the Commission the 
meeting adjourned at 9:25 AM to go into closed session. 

Jean Caramattl 
Commission Secretary 



Minutes, September 15, 1987, Page 9 



,., SAN FRANCISCO 
AIRPORTS COMMISSION 




UOCUMEMTS DEPT. 

1933 

SAi>) FRANCISCO 
Pllhl ir. I_|R^> apv 



MINUTES 



OCTOBER 6, 1987 



DIANNE FE1NSTEIN, MAYOR 

COMMISSIONERS 

MORRIS BERNSTEIN 

President 

J. EOWARD FLEISHELL 

Vice-President 

OR. Z.L GOOSBY 

ATHENA TSOUGARAKIS 

DON RICHARDS STEPHENS 



LOUIS A.TURPEIM 

Director of Airports 



San Francisco International Airport 
San Francisco, California 94128 



Index 

of the Minutes 

Airports Commission 

October 6, 1987 



CALENDAR 


AGENDA 




SECTION 


ITEM 


TITLE 


A. 




CALL TO ORDER 


B. 




ROLL CALL: 


C. 




ADOPTION OF M 



RESOLUTION 

NUMBER PAGE 



Special meeting of 

September 10, 1987, and, 87-0204 

Regular meeting of 

September 15, 1987 87-0205 



D. ANNOUNCEMENT BY SECRETARY: 

E. ITEMS INITIATED BY COMMISSIONERS: 

F. PENDING LEGISLATION: 



Update on Local , State and 
Federal Legislation 



ITEMS RELATING TO ADMINISTRATION, 
OPERATIONS & MAINTENANCE: 

2. Authorization to Conduct Pre-Bid 
Conference for the Foreign 

Currency Exchange Lease 87-0206 < 

3. Award of Professional Services 
Contract to Western Ecological 
Services Company, Inc. to Provide 
Biological Services for the Airport 
Master Plan and Environmental 

Impact Report - $17,000 87-0207 5 

4. $88,438 Supplemental Appropriation 
to Add Three Positions in the 

Environmental Control Section 5-6 



CONSENT CALENDAR OF ROUTINE 
ADMINISTRATIVE MATTERS: 

Resolution Approving the 

Continuance of the Teleguide 

Operating Permit 87-0208 



6. Authorization Approving Westin 
Hotel's Landscape Design and 
Improvement 87-0209 

7. Resolution Approving Assignment 

of National Car Rental 87-0210 

8. Travel/Training for Airport 
Representatives 87-0211 



I. CORRESPONDENCE: 



K. ADJOURNMENT TO GO INTO 

CLOSED SESSION: 



Minutes, October 6, 1987, Page 2 



Minutes 

of the 

Airports Commission Meeting 

October 6, 1987 



A. CALL TO ORDER: 

The regular meeting of the Airports Commission was called to order at 
9:00 A.M. in Room 282, City Hall, San Francisco, Ca. 



ROLL CALL: 
Present: 

Absent: 



Morris Bernstein, President 

J. Edward Fleishell, Vice President 

Athena Tsougarakis 

Don Richards Stephens 

Z.L. Goosby 



ADOPTION OF MINUTES: 

By order of the Commission President, the minutes of the following 
meetings were adopted: 



No. 87-0204 
No. 87-0205 



Special meeting of September 10, 1987: 
Regular meeting of September 15, 1987 



D. ANNOUNCEMENT BY SECRETARY: 



In accordance with Section 54957.1, of 
the Brown Act, Jean Caramattl , 
Commission Secretary announced 
unanimous adoption of resolution no. 
87-0203 authorizing Modification No. 3 
to agreement with Morrison & Foerster 
at the closed session of September 15, 
1987. 



E. ITEMS INITIATED BY COMMISSIONERS: 

There were no items Initiated by Commissioners 



Minutes, October 6, 1987, Page 3 



PENDING LEGISLATION: 

1 . Update on Local, State & Federal Legislation 

Report on the status of legislation of 
interest to the Airport. 

Mr. Dennis Bouey, Deputy Director, Facilities Operations and 

Maintenance, said that there is a requirement which stipulates that 

transportation of materials from underground tanks will be handled by 
San Mateo County. 

Commissioner Tsougarakis asked if there was any Indication that this 
will be brought up again. She noticed that the Governor's veto 
message indicated that he would sign a tighter bill. 

Mr. Bouey responded that although there 1s no indication at this 
time, he felt that San Mateo would try again. 



ITEMS RELATING TO ADMINISTRATION, OPERATIONS & MAINTENANCE: 

The following items were unanimously adopted. 

2. Authorization to Conduct a Pre-Bid Conference for the Foreign 
Currency Exchange Lease 

No. 87-0206 Resolution approving lease specifica- 

tions and authorizing Director to 
conduct a Pre-Bid Conference for the 
Foreign Currency Exchange Lease. 

Mr. Turpen, Airport Director, said that the Foreign Currency Exchange 
lease is coming to a close and staff is requesting permission to 
conduct a pre-bid conference for this lease. He said that there are 
no changes at this time. 

Commissioner Stephens asked about the size of the facility. 

Mr. Turpen said that there are three facilities, one is about 80-100 
square feet and is located on the lower level outside of customs; 
there is a very small facility at Boarding Area 'D'; and, a larger 
facility near the shops on the left hand side of the concourse as you 
approach the boarding area. 

Ms. Angela Gittens, Deputy Director, Business and Finance, said that 
the Airport receives $600,000 a year for those spaces. 

Mr. Turpen explained that this was bid right after Miami bid Its 
lease. In 1982 or 1983 there was a lot of competition between City 
Corp and the Bank of America and as a result the Miami bids came in 
very high. The Commission the decided to bid it at SF0. 

Commissioner Stephens asked if staff expects to receive a bid that 
will be in line with the prior rental. 

Mr. Turpen responded that he did not think so but Miami feels that 
the climate is right for another significant bid. He said that this 
time the Bank of America may be in competition with Deak Interna- 
tional. He said he has met with Deak International and they are very 
interested in bidding. He feels that there will once again be an 
aggressive bidding climate. 

Minutes, October 6, 1987, Page 4 



3. Award of Professional Services Contract to Western Ecological 

Services Company, Inc. to Provide Biological Services for the Airport 
Master Plan and Environmental Impact Report - $17,000 

No. 87-0207 Consultant to determine the impact on 

garter snakes as a result of develop- 
ing the Airport's West of Bayshore 
property and to recommend mitigation 
measures for these impacts. 

Mr. Turpen said that this expenditure is in support of the develop- 
ment of the master plan. He explained that any work done on the West 
of Bayshore property must be preceded by a mitigation plan and it Is 
important that individuals be hired who can help the Airport towards 
that end. Staff believes that the firm being recommended can do the 
job. This expenditure will enable the Airport to develop 180 acres. 

Mr. Turpen said that staff has tentatively targeted some type of West 
of Bayshore development within the next five years. This will have 
to be done sooner or later and putting it off will only expand the 
time frame. This will keep the Airport on that timetable. 



The following item was put over. 

4. $88,438 Supplemental Appropriation to Add Three Positions in the 
Environmental control Section 

Resolution authorizing the Director of 
Airports to request from the Mayor and 
the Board of Supervisors a $88,438 
supplemental appropriation to add 
three positions in the Environmental 
Control Section. 

Commissioner Fleishell asked if anyone has discussed this with the 
lobbyist. He felt that this is contrary to presentations being made 
in Sacramento. 

Mr. Turpen asked Commissioner Fleishell what he meant. 

Commissioner Fleishell explained that the story told to him was that 
the Airport was highly competent to handle the problem and San Mateo 
would be duplicating our efforts. He felt that the timing was bad. 

Mr. Turpen said that 70 positions are envisioned, 67 of which are 
already on board. One of the remaining three is simply a -replacement 
for a contract person. He said that this simply formalizes what we 
need to do. 

Commissioner Tsougarakis asked what this section does. 

Mr. Bouey explained that this is a reorganization of the Facilities 
Operations and Maintenance division. He has taken various elements 
that already exist and brought them into one group. He explained 
that when he first came to the Airport he spent the majority of his 
time overseeing construction. In the last year a great many changes 
have taken place through legislation, both locally and at the State 
level. He said that an Environmental Control Unit was established to 
look at management and disposal of hazardous materials, air quality, 
water quality, underground tanks, and survel Hence programs, both for 
ourselves and our tenants. Mr. Bouey explained that these units 
already exist; we are simply formalizing the management position. A 



Minutes, October 6, 1987, Page 5 



person with special skills is needed to manage the diversity of the 
unit. The only new employee will be the Industrial Hygenist. 

Commissioner Bernstein asked if this was contrary to the Mayor's 
decision that there be no new hirings. 

Mr. Turpen responded that the Mayor's prohibitions were toward 
General Fund departments, not enterprise departments. He said that 
she may not approve this but in view of what can be gained, support 
from the Mayor's Office can be solicited. 

Mr. Bouey added that the Mayor recently authorized industrial 
hygenist positions for the Port, the Department of Public Works, 
Recreation and Park and the Department of Public Health because they 
are required by San Francisco ordinances as well as State law. 

Commissioner Bernstein felt that it was a lot of money and asked if 
this was time-critical. 

Commissioner Fleishell said he would like an expression from the 
Mayor before moving ahead. Even though the Airport is an enterprise 
agency, from a budgetary standpoint the Mayor has almost the same 
attitude towards us as she does towards general fund agencies. 

Mr. Turpen said that the Mayor's most recent budget message clearly 
distinguished between the General Fund and enterprise departments and 
that is a departure from what has traditionally happened. He said it 
would be contrary to normal procedure to go to the Mayor first and 
tell her that if she will give her support the Commission will give 
its approval. He argued that these positions are justified. 

Commissioner Tsougarakis commented, with regard to one position, 
that the Airport would save money by hiring an employee Instead of 
retaining a consultant. The other position is mandated by local 
ordinance. 

Mr. Bouey added that in the four years he has been with the Airport 
he has deleted sixteen professional positions. . .engineers and drafts- 
men... from this group and one other group. He said that this is the 
first time in four years he has asked for a professional position. 

Mr. Bouey said that the next step In the normal process of business 
is to go to the Mayor. He said that while approval is not essential 
for this meeting he is eager to move ahead as there are programs that 
are mandated and training must begin. 

Commissioner Bernstein argued that this is for three permanent 
positions at a cost of $211,000. He asked for time to think about it. 

Mr. Turpen said that the Incremental is $88,000. He said his 
recommendation is to move ahead. 



H. CONSENT CALENDAR OF ROUTINE ADMINISTRATIVE MATTERS: 
The folowing items were unanimously adopted. 

5. Resolution Approving the Continuance of the Telequide Operating Permit 
No. 87-0208 

Minutes, October 6, 1987, Page 6 



Authorization Approving Westin Hotel's Landscape Design and 

Improvement 



No. 87-0209 



Resolution approving the landscape 
design for and authorizing the 
improvement by Westin Hotel of a 
portion of Airport Property. 



7. Resolution Approving Assignment of National Car Rental 
No. 87-0210 

8. Travel /Training for Airport Representatives 
No. 87-0211 

* * * 

I. CORRESPONDENCE: 

There was no discussion by the Commission. 

* * * 



K. ADJOURNMENT TO GO INTO CLOSED SESSION: 

There being no further calendared business before the Commission the 
meeting adjourned at 9:20 AM to go into closed session. 




iJ^Jhu^A 



'-<. 



James Ilnicki 

Acting Commission Secretary 



Minutes, October 6, 1987, Page 7 



L SAN FRANCISCO 
AIRPORTS COMMISSION 




DOCUMENTS DE 

2 1 1988 

SAN FRANCISCO 

P"HI IC. I IPIJARV 



MINUTES 



OCTOBER 20, 1987 



DIANNE FEINSTEIN, MAYOR 

COMMISSIONERS 

MORRIS BERNSTEIN 

President 

J. EDWARD FLEISHELL 

Vice-President 

DR. Z.L. GOOSBY 

ATHENA TSOUGARAKIS 

DON RICHARDS STEPHENS 



LOUIS A.TURPEIM 

Director of Airports 



San Francisco International Airport 
San Francisco, California 94128 



Index 

of the Minutes 

Airports Commission 

October 20, 1987 



CALENDAR AGENDA RESOLUTION 

SECTION ITEM TITLE NUMBER PAGE 

A. CALL TO ORDER: 3 

B. ROLL CALL: 3 

C. ANNOUNCEMENT BY SECRETARY: 3 



D. ITEMS INITIATED BY COMMISSIONERS: 

Audit Report on Shuttle Bus 



ITEMS RELATING TO ADMINISTRATION, 
OPERATIONS & MAINTENANCE: 

1. Approval of Eligible Bidders and 
Authorization to Bid - Airport 

Motor Coach Agreement 87-0213 3-4 

2. Resolution Awarding Lease Option 
to Host International (REPORT 

ONLY) 4-8 

3. Resolution Extending Medical 

Clinic Agreement 87-0214 8 

4. Authorization to Receive Bids: 
Insurance/Business Service 

Center 87-0215 8 

5. $88,438 Supplemental Appropria- 
tion to Add Three Positions in 
the Environmental Control 

Section 87-0217 9 



F. CONSENT CALENDAR OF ROUTINE 

ADMINISTRATIVE MATTERS: 

6. Award of Contract 1909R, 
Reconstruct Plaster Wall, 
South Terminal to Echo West, 

Inc. in the Amount of $77,650. 87-0216 

7. Tenant Improvement: American 
Airlines - Boarding Area 'E' - 
Modification of Jet Loading 
Bridges - Contract T-3323 - 
$1,450,000 - No Cost to City 87-0218 

8. Request for Travel /Training 
Authorization 87-0219 



CORRESPONDENCE: 

California Commission on 

Aviation & Airports 87-0231 10 



H. CLOSED SESSION: 9 

I. ADJOURNMENT: 10 



Minutes, October 20, 1987, Page 2 



Minutes 

of the 

Airports Commission Meeting 

October 20, 1987 



A. CALL TO ORDER: 

The regular meeting of the Airports Commission was called to order at 
9:11 A.M. in Room 282, City Hall, San Francisco, Ca. 



ROLL CALL: 
Present: 

Absent: 



Morris Bernstein, President 
Z. L. Goosby 
Athena Tsougarakis 

J. Edward Fleishell, Vice President 
Don Richards Stephens 



ANNOUNCEMENT BY SECRETARY: 



In accordance with 
the Brown Act, Jea 
Commission Secreta 
unanimous adoption 
87-0212 hiring the 
Morrison & Foerste 
services with resp 
tation and impleme 
Airport/Airline Le 
ment and the Commi 
Regulations at the 
October 6, 1987. 



Section 54957.1 of 
n Caramatti , 
ry, announced 

of reoslution no. 

law firm of 
r to provide legal 
ect to the interpre- 
ntation of the 
ase and Use Agree- 
ssion' s Rules and 

closed session of 



D. ITEMS INITIATED BY COMMISSIONERS: 

Commissioner Goosby asked that the Commission be provided with a summary 
of the audit of the Shuttle Bus company. 



E. AGENDA ITEMS RELATING TO ADMINISTRATION, OPERATIONS AND MAINTENANCE: 

Item No. 1 was unanimously adopted. 

1 . Approval of Eligible Bidders and Authorization to Bid - Airport Motor 
Coach Agreement 



Minutes, October 20, 1987, Page 3 



No. 87-0213 Resolution certifying eligible bidders 

and authorizing Director to accept 
bids for the Airport Motor Coach 
Agreement. 

Mr. Turpen, Airport Director, told the Commission that of the six 
companies that submitted pre-qual ification documents three were 
certified as eligible bidders. A fourth company, Guiton, 
subsequently submitted the necessary documentation, making them 
eligible to bid as well. He said that Grosvenor Bus Lines told staff 
that they would not be bidding. 

Mr. Turpen recommended adoption of the resolution authorizing the 
Director to accept bids for the Airport Motor Coach Agreement, and, 
approving the certification of SFO Airporter, Sequoia Stages, 
Greyhound Lines and Guiton as eligible bidders, and, rejecting 
Community Transit and Grosvenor Bus Lines as eligible bidders. 



2. Report on Lease Option to Host International 

Report on the conditional extension of 
the term of the Host International 
food and beverage lease. 

Mr. Lou Turpen told the Commission that staff would consider the Host 
extension under two conditions, that 30 percent of the space 
presently occupied by Host be made available for minority/women 
business opportunities and, further, that 30 percent of the space 
represent at least 30 percent of the revenue as staff did not want 
space to be designated to MBEs/WBs that was not revenue productive. 
Also, that a market basket be established on those high volume 
purchases to ensure that Airport users pay a reasonable price for the 
most popular food items. Host agreed in principle to those two 
conditions. Staff has been working with Host for several months to 
define the areas that we think are appropriate for this opportunity, 
to establish procedures, and to guidelines and the outline of this 
arrangement. 

Mr. Turpen said that the September 30 meeting at the Airport to 
discuss this matter was well attended. Staff still feels that 
further clarification is needed, specifically in the area of 
procedural guidelines, i.e. how a sublessee will be selected and the 
criteria that the Airport will insist upon. 

Mr. Turpen said that todays report is available to the public and 
recommended calling either Angela Gittens or Jerry Copelan after 
reviewing the report. This matter will be finalized within the next 
few weeks and a final set of draft specifications and procedures will 
be developed. Comments would be appropriate at that time and will be 
considered as the final evaluation is prepared. 

Commissioner Bernstein called on Mr. Jefferson to address the 
Commi ssion. 

Mr. Jefferson felt that the proposal was very innovative but asked 
that they be given more time to evaulate it, possibly 60-90 days. He 
said that the problem is that Host is proposing to sublease 11 
specific concessions as a part of this program and they need to 
determine whether or not those concessions will be profitable. He 
said that this is not just an issue of revenue, it is an issue of 
whether the MBEs and WBEs will be able to make money at those 
locations . 



Minutes, October 20, 1987, Page 4 



Mr. Jefferson said that they support the idea and his request should 
not be construed to be in opposition to the proposal. He was simply 
suggesting that while staff and Host have worked on this for two 
years, they have had only a very brief time to look at the proposal 
so they felt that an additional 60-90 days would be appropriate in 
order to further analyze the proposal and provide more detailed and 
specific comments. 

Commissioner Bernstein asked Mr. Harold Yee to address the Commission. 

Mr. Yee applauded Mr. Turpen for the way he has conducted this 
business on behalf of the City but suggested that if there are good 
reasons not to follow the MBE/WBE legislation then the public should 
be made aware of them... i.e., the 30/10 goal, the preference for San 
Francisco businesses. He urged that the Commission retain the 
requirement that owner-operators be given a preference in the 
operation of the concessions. He felt that in order to benefit the 
small, minority and women-owned businesses in the City it is 
imperative that too many allowances aren't provided just for one 
company but that it be spread around. 

Commissioner Goosby commented that clarification should also be given 
as to whether or not the local ordinance also spells out and defines 
local businesses. The language of the ordinance should be reflected 
and if this is going to be restricted to local businesses the wording 
should be uniform, not ambiguous. 

Mr. Yee agreed with Commissioner Goosby. He said that the question 
as to why the Airports Commission is adopting rules of its own rather 
than following legislation adopted by the Board of Supervisors and 
signed by the Mayor won't come up at the Board. 

Commissioner Goosby said that he made that point two meetings ago. 
He asked why the Airport was departing from a debated, compromised 
official City pol icy. 

Mr. Yee said that if every department adopted its own rules it would 
raise havoc. 

Commissioner Tsougarakis asked what the Airport's record was vis a 
vis the legislation. 

Mr. Turpen explained that this opportunity must be put in 
perspective. In exchange for an option, Host is being asked to 
provide certain space. It was decided, after much discussion, that 
Host would set aside approximately 30 percent of its space but the 
actual amount of space would be about 36 percent. He said that that 
is a negotiated agreement. The Airport has no right to insist or 
demand of Host that they give up any of that space under their 
current lease. 

Mr. Turpen explained that the ordinance, at 30/10, is really for the 
Airport overall, not concession by concession. The overall goal 
remains. If we achieve 36 percent on this then at some point we 
might have to make up that 4 percent difference. He said that 36 
percent will help the Airport tremendously in achieving its goal 
because we wouldn't have access to this space until 1994 without this 
agreement. 

Mr. Turpen also said that when we wanted to set aside 30/10 for 
Boarding Area 'E' the Human Rights Commission told us we couldn't do 
it. Boarding Area 'E' bounced around for quite some time when all 
the Airport did was promote that area as a sublease requirement for 
minority/women business based on a square footage extension, which is 
what the Airport has traditionally done. 

Minutes, October 20, 1987, Page 5 



Mr. Turpen said that the suggestion that this effort is in violation 
of a City ordinance is incorrect in this specific situation. 
Secondly, the ordinance is not drawn to every specific concession 
opportunity but rather to a departmental goal to which the Airport 
traditionally commits. Thirdly, the problem the Airport ran into 
with Boarding Area 'E' still exists and that is why that Boarding 
Area was bid without our principal concession concept, which the 
Airport invented, promoted and has advocated all along. 

Mr. Turpen explained that this was seen as an opportunity to get as 
much space as possible on this concession before the re-bid date. 
The other option is to bid this as a new concession in 1994 and try 
to include the square footage allowances that staff feels is right. 
He felt that he had to alert the community and the Commission that 
that very philosophy was rejected by the Human Rights Commission as 
being inappropriate. He asked what will happen when HRC says no to 
30/10 in 1994 and this space is then bid as a straight concession 
opportunity. 

Mr. Turpen felt that at 36 percent this was a tremendous opportunity 
for the community. He did not see getting any more from Host at this 

point. 

Commissioner Goosby said that Mr. Yee suggested that the community 
should be made aware of why the Airport has these figures. This is 
the first time the community has heard that Host has dragged their 
feet at going beyond this point. 

Mr. Turpen did not feel that Host was dragging their feet. 

Commissioner Goobsy disagreed and felt that Host was not in favor of 
30/10. He assumed that Host had been broached about this. 

Mr. Turpen said he did not think it was fair to characterize Host as 
dragging their feet. He said that staff has been talking with Host 
over the past two years about what they could make available. 

Commissioner Goosby said that Host should have been asked. He wanted 
Host to know that the Commission is strongly in favor of what they 
are proposing but additional negotiations must take place before this 
is approved. He felt that the community should be brought up to 
speed and given time to digest the information. He felt that a 60 
day public comment period should therefore be provided before the 
Commission gives its final approval. In the meantime members of the 
community are free to negotiate with Host. 

Commissioner Goosby said that this is an important precedent and Host 
should be applauded for its forward-looking attitude. 

Commissioner Tsougarakis said that since the conference was held on 
September 30 and staff was talking about waiting until the next 
meeting or even the meeting after that, why not extend it one more 
meeti ng. 

Mr. Turpen responded that the request is for 60-90 days after the 
final set of specifications are presented to the Commission. To 
discuss those things while they are still in a state of flux would 
not be productive. 

Commissioner Goosby said that there is nothing keeping the community 
groups from contacting Host while staff is developing that final 
proposal . 

Mr. Turpen said that was correct but he did not want to create the 
impression that things would not change between now and the time 

Minutes, October 20, 1987, Page 6 



staff returns. 

Commissioner Tsougarakis asked for the final specifications as soon 
as possible. She felt the Airport was doing a good job. 

Mr. Yee agreed with Commissioner Tsougarakis. He said that the 
MBE/WBE legislation provides relaxation of the goals but it must be 
asked for and the rationale must be provided. 

Mr. Turpen will return to the Commission with procedural guidelines. 
The community will then have 90 days to review it. 

Commissioner Goosby said that 60 days was enough. 

Commissioner Tsougarakis agreed with Commissioner Goosby. 

Mr. Turpen said that there will be a 60 day public comment period 
commencing after the next time this item is discussed at a public 
meeting, and before final approval. 

Commissioner Goosby asked the Human Rights Commission representative 
to speak. 

Ms. Vickie Zimpel, Human Rights Commission Senior Contract Compliance 
Officer, said HRC is very supportive of the approach being used with 
Host and it will be a true break-through if those concessions are 
opened up to MBE's/WBE's. She said that HRC's only concern is that 
what is worked out conforms, in the broadest sense, with what the 
Board of Supervisor's approved. Different definitions and different 
approaches to the MBE program will create a confusing situation. For 
that reason, HRC strongly urges the Airport to ask Host whether it 
would be possible to go to 30/10 or else explain why that goal is 
lower . 

Commissioner Tsougarakis asked if the goal is by department. 

Ms. Zimpel responded that the ordinance spells it out as a broad 
City-wide goal which is carried down in departments and then down to 
individual contracts and leases. It has been the policy of the 
Commission, which normally is in the position of developing these 
goals, to have 30/10. 

Mr. Turpen said that he did not believe that was true. 

Commissioner Tsougarakis said that she would like to understand what 
the Airports Commission is responsible for. 

Mr. Turpen said that it is a departmental commitment, not. an 
individual commitment. 

Ms. Zimpel said that HRC has discussed this matter with the City 
Attorney and will ask that office to provide the Airport with 
information on this issue. She pointed out that the Airport is in a 
negotiating posture and is requiring Host, as a condition of 
extending the lease, to include MBE/WBE enterprises on the lease. 
That is an entirely different situation, legally, under the ordinance 
than if it goes out to bid. 

Commissioner Goosby said that in other words this is voluntarily 
being agreed upon. 

Ms. Zimpel said that in the case of Boarding Area 'E' what would have 
made it legal is what eventually happened, i.e. a request for a set 
aside and, limit the bidding to MBE's and WBE's, which is provided 



Minutes, October 20, 1987, Page 7 



for under the ordinance. HRC approved it and thought that the 
Airport had met the test that would have authorized such a set 
aside. It was the City Attorney who felt that the Airport had not 
carried through with all of the good faith steps required in order to 
meet the set aside request. She said that that is a very extreme 
solution and this ordinance is currently in the Ninth Circuit Court 
of Appeals. The City Attorney's Office is being very cautious. They 
felt that Boarding Area 'E' needed further scrutiny to determine 
whether or not it could have been split up. She said that the Human 
Rights Commission was as upset as the Airport was about this. She 
said that a bid situation is entirely different from this situation 
with Host where the Airport is in a negotiating posture. HRC has 
already checked with the City Attorney to make sure that there will 
be no legal problems with this approach. The City Attorney's answer 
has been no and that office has echoed HRC's concerns in terms of 
conforming broadly with the policy. 

Commissioner Tsougarakis said that she was certain that everyone 
understands that the Airports Commission has responsibility from many 
different angles for the business that goes on at the Airport. It's 
a juggling act and there is no question that the Airport sympathizes 
with those concerns and will do everything it can. She asked for a 
clarification on the ordinance. 

Ms. Zimpel again told the Commission that HRC is very supportive in 
general of the Airport. 

Mr. Turpen said that staff will try to conclude the administrative 
procedural aspects of this opportunity with Host and make them 
available to the Commission. There will be a 60-day public comment 
period prior to final approval of the specifications. 



Item No. 3 was unanimously adopted as amended. 

Resolution Extending Medical Clinic Agreement 

No. 87-0214 Resolution extending existing Medical 

Clinic Agreement through June 30, 1990. 

Mr. Turpen said that this item includes, as was previously discussed 
with the Commission, a 25 percent minority requirement for 
physicians. This requirement has been agreed to by the current 
operator of the Medical Clinic. 

Commissioner Goosby asked that the last resolve be amended to read: 
"That at least 25 percent of the Clinic's practicing physicians shall 
be minorities and women." 



Items 4 and 5 were unanimously adopted. 

Authorization to Receive Bids : 
Insurance/Business Service Center 

No. 87-0215 Resolution authorizing bid of an 

Insurance/Business Service Center 
lease. 

Mr. Turpen said that staff was to be complimented for putting this 
together. 



Minutes, October 20, 1987, Page 8 



5. $88,438 Supplemental Appropriation to Add Three Positions in the 
Environmental Control Section 

No. 87-0217 Resolution authorizing the Director of 

Airports to request from the Mayor and 
the Board of Supervisors an $88,438 
supplemental appropriation to add 
three positions in the Environmental 
Control Section. 

Mr. Turpen said that this matter came before the Commission at a 
previous meeting and no input has been received since that meeting. 
He recommended approval . 

Commissioner Goosby asked if those positions have already been filled. 

Mr. Turpen said that the safety officer is on board so there is 
really only one addition. 



CONSENT CALENDAR OF ROUTINE ADMINISTRATIVE MATTERS: 

The following items were unanimously adopted. 

6. Award of Contract 1909-R, Reconstruct Plaster Wall, South Terminal to 
Echo West, Inc. in the amount of $77,650 

No. 87-0216 The 24-year old plaster wall at the 

field side of the terminal, which is 
developing leaks due to deterioration, 
will be structurally reinforced and 
replastered. 



Tenant Improvement: 

American Airlines - Boarding Area 'E' 

Modification of Jet Loading Bridges 

Contract T-3323 - $1,450,000 - No Cost to City 

No. 87-0218 



Request for Travel /Training Authorization 
No. 87-0219 



H. CLOSED SESSION: 

The meeting recessed at 9:40 AM to go into closed session and reconvened 
at 10:00 AM. 



Minutes, October 20, 1987, Page 9 



CORRESPONDENCE: 

The Commission unanimously adopted a resolution recognizing Mr. Turpen's 
involvement with the California Commission on Aviation and Airports and 
potential legislation in the area of land use and aircraft noise liability. 

No. 87-0231 



I. ADJOURNMENT: 

There being no further calendared business before the Commission the 
meeting adjourned at 10:00 AM. 




\JuJL\AhJF 



Jean Caramatti 
Commission Secretary 



Minutes, October 20, 1987, Page 10 



Do^> 






JAty 



?5 






SAN FRANCISCO 
AIRPORTS COMMISSION 



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MINUTES 



NOVEMBER 17, 1987 



>ocu. 

JAN 2 6 1988 

.NCISCO 



DIANNE FEINSTEIN, MAYOR 

COMMISSIONERS 

MORRIS BERNSTEIN 

President 

J. EOWARD FLEISHELL 

VIct-Prtsldent 

DR. Z.L. GOOSBY 

ATHENA TSOUGARAKIS 

DON RICHARDS STEPHENS 

LOUIS A.TURPEN 

Director of Airports 

San Francisco International Airport 
San Francisco, California 94128 



Index 

of the Minutes 

Airports Commission 

November 17, 1987 



CALENDAR 
SECTION 



AGENDA 
ITEM 



TITLE 



RESOLUTION 
NUMBER 



PAGE 



B. 
C. 



CALL TO ORDER: 



ROLL CALL: 



ADOPTION OF MINUTES: 

Regular meetings of 
October 6, 1987 and, 
October 20, 1987 



87-0233 
87-0233-A 



D. 
E. 



ANNOUNCEMENT BY SECRETARY: 



DIRECTOR'S REPORTS: 

Status Report on RIDES 
Program 



3-4 



ITEMS INITIATED BY COMMISSIONERS: 
Hijacking 
Position Paper 

Settlement of Claims - Various 
Settlement of Claim - Kaplan 



87-0248 
87-0249 



ITEMS RELATING TO ADMINISTRATION, 
OPERATIONS & MAINTENANCE: 

Authorization for Pre-Bid 
Conference: Entertainment 
Center/Video Game Room Lease 



87-0234 



Award of Contract No. 1437: 

Overlay Cargo Ramp and Taxiway 

'B' 87-0235 

$19,654,907 Supplemental Appro- 
priation to Fund Approved 
Capital Projects 87-0236 

Close-Out of Airport Contract 
No. 1438: Reconstruction and 
Overlay of Taxiway 'F' 87-0237 



5 
8-9 



5-6 



CONSENT CALENDAR OF ROUTINE 
ADMINISTRATIVE MATTERS: 

6. Retirement Resolution: 

Donald C. Harrington 87-0232 6 

7. Retirement Resolution: 

George R. Owens 87-0238 6 

8. Extension of Contract with 
Signet Testing Laboratories 
for Construction Materials 
Testing, South Terminal 
Modernization and Replacement 

Projects 87-0239 6 

9. Type II Modification for 
Contract 1410EF, South Terminal 
Reconstruction, Phase II 87-0240 6 

10. Bid Call : Contract No. 1944: 
West Underpass - Rehabilitation 

of Drainage System 87-0241 7 

11. Resolution Confirming Establish- 
ment of Bureau of Temporary 
Exhibitions and Cultural Programs, 

Effective July 1, 1980 87-0242 7 

12. Resolution Approving Assignment 
of Lease of Pacific Southwest 
Airl ines , Inc. to U.S. Air 

Group, Inc. 87-0243 7 

13. Resolution Modifying Lease - 

United Airlines, Inc.- REMOVED FROM CALENDAR 7 

14. Resolution Approving Assignment 
of Lease of Air Cal to American 
Airl ines 

15. Resolution Modifyingf Lease - 
Ameri can Ai rl i nes , Inc . 

16. Resolution Modifying Lease - 
Trans World Airlines, Inc. 

17. Resolution Modifying Lease - 
Alaska Ai rl ines , Inc. 



CORRESPONDENCE: 

Proposed Noise Regulation 



87-0244 


7 


87-0245 


7 


87-0246 


7 


87-0247 


7 



ADJOURNMENT TO GO INTO 
CLOSED SESSION: 



Minutes, November 17, 1987, Page 2 



Mi nutes 

of the 

Airports Commission Meeting 

November 17, 1987 



CALL TO ORDER: 

The regular meeting of the Airports Commission was called to order at 
9:04 A.M. in Room 282, City Hall, San Francisco, Ca. 



ROLL CALL: 

Present: 



Morris Bernstein, President 

J. Edward Fleishell, Vice President 

Z. L. Goosby 

Athena Tsougarakis 

Don Richards Stephens 



C. ADOPTION OF MINUTES: 

The minutes of the following regular meetings were adopted by order of the 
Commission President. 



No. 87-0233 
No. 87-0233-A 



October 6, 
October 20. 



D. ANNOUNCEMENT BY SECRETARY: 



In accordance with Section 54957.1 of 
the Brown Act, Jean Caramatti , 
Commission Secretary, announced 
unanimous adoption of resolution no. 
87-0230 authorizing the hiring of H.J. 
Degenkolb to evaluate the structure of 
the North Terminal roof at the closed 
session of October 20, 1987. 



E. DIRECTOR'S REPORTS: 



1 . Status Report on RIDES Program 



RIOES for Bay Area Commuters is now in 
operation at San Francisco Interna- 
tional Airport. Their survey indicates 
good potential for reducing employee 
parking shortage. 



Minutes, November 17, 1987, Page 3 



Mr. Peter Nardoza, Assistant Deputy Director, Business and Finance, 
acting in Mr. Turpen's absence, told the Commission that this report 
is from Landside Operations. 

Commissioner Goosby said that the summary indicates that RIDES will 
try to reduce employee traffic by 10 percent. 

Mr. Sheldon Fein, Landside Operations, said that a committee of 
Station Managers and tenants has established a goal of reducing 
employee traffic by 1000 cars. He said that it has been determined 
in meetings with the tenants that this is a reasonable goal. 

Commissioner Bernstein asked what would happen to the program if the 
number of riders is reduced substantially. 

Mr. Nardoza responded that it would alleviate the employee parking 
problem. He said he believed that if Airport employees were not 
availing themselves of the various van pool services the Airport will 
have to take a serious look at how to deal with employee parking, 
possibly the construction of a new garage. 

Commissioner Goosby asked that that be put in writing. 

Commissioner Tsougarakis said that the Commission approved RIDES for 
one year and suggested that at the end of the year it come before the 
Commission for review. 

Mr. Fein explained that this one-year service contract is at a 
specific not-to-exceed amount. The Commission can decide at the end 
of one year whether or not it wants to extend the contract. 



ITEMS INITIATED BY COMMISSIONERS: 

Commissioner Stephens commented on the Mayor's letter and her praise of 
the Airport's response to the hijacking. He suggested that the Commission 
be called in the event something like that happens again. 



Commissioner Stephens also commented on Bob Epifanio's position paper, 
which the Director subsequently amended, and suggested that the Commission 
be made aware of controversial stands the Airport is about to take. 

Mr. Turpen explained that the first paper was contradictory to the 
Airport's traditional position. The Airport does not comment on anything 
that is beyond its boundaries. He said that the Airport can comment on 
violations that happen within its boundaries but that paper discussed 
areas beyond the geographic boundaries of the Airport. He said that 
although the Airport is concerned about those items mentioned in the 
position paper, we must confine our efforts and our resources to Airport 
property. Mr. Turpen explained that the final product went beyond the 
scope of what was discussed. He also told the Commission that this was 
meant as an internal document. 



Commissioner Fleishell moved both pending legal settlements. Commissioner 
Tsougarakis seconded the motion. The resolutions were unanimously adopted. 

No. 87-0248 Various settlements 

No. 87-0249 Settlement: Kaplan 

Minutes, November 17, 1987, Page 4 



G. ITEMS RELATING TO ADMINISTRATION, OPERATIONS & MAINTENANCE: 

The following items were unanimously adopted. 

2. Authorization for Pre-Bid Conference: 

Entertainment Center/Video Game Room Lease 

No. 87-0234 

Mr. Turpen told the Commission that this rebids an existing 
concession. The Airport would provide the equipment and the facility 
at 50 percent of gross revenue. He said that some of the games will 
be replaced with more popular games. 

Commissioner Fleishell asked if the Airport was responsible for 
repairing the equipment. 

Ms. Angela Gittens, Deputy Director for Business and Finance, 
responded that the Airport does not repair the current equipment. 
Originally, there were two game rooms and the Airport has been using 
the old game room for spare parts for the remaining game room. 
Although not required to do so, the operator has purchased some new 
games himself, to keep current. 

Commissioner Fleishell asked how much the Airport was required to 
replace per annum. 

Ms. Gittens responded that the concessionaire will be required to 
provide any new equipment and repair existing equipment as in any 
normal concession; there will be no requirement on the Airport in 
this new lease. 



Item No. 3 was put over to the end of the calendar in order to 
provide time for representatives of O'Grady Paving to arrive and 
address the Commission. 

Award of Contract No. 1437: 
Overlay Cargo Ramp and Taxi way 'B' 



$19,654,907 Supplemental Appropriation to Fund Approved Capital 
Projects 

No. 87-0236 Resolution authorizing $19,654,907 

supplemental appropriation to fund 
capital projects. 

Commissioner Goosby asked if this was all new construction. 

Mr. Turpen responded that this was part of the Five-Year Program. He 
was not certain if it was all new construction or included some 
modernization . 

Commissioner Goosby asked if these Hems were included in the 
Airport's Outreach Program. He suggested that MBEs/WBEs/SBEs be 
contacted early on so that they can prepare themselves to be in a 
posi tion to bid. 



Minutes, November 17, 1987, Page 5 



Commissioner Tsougarakis asked that she be sent a list of projects 
included for this supplemental. 



5. Close-Out of Airport Contract No. 1438: 
Reconstruction and Overlay of Taxi way 'F' 

No. 87-0237 Resolution to approve a time extension 

and assessment of $25,000 in liqui- 
dated damages for avoidable delays and 
to close out this contract. 



H. CONSENT CALENDAR OF ROUTINE ADMINISTRATIVE MATTERS: 

Items 6 through 12 and 14 through 17 were unanimously adopted. Item No. 
13 was removed from the calendar. 

6. Retirement Resolution : 
Donald C. Harrington 

No. 87-0232 



7. Retirement Resolution 
George R. Owens 

No. 87-0238 



Extension of Contract with Signet Testing Laboratories for 
Construction Materials Testing, South Terminal Modernization and 
Replacement Projects 

No. 87-0239 Contract will be amended to: 1) 

extend termination date to December 
31, 1988; 2) provide testing of 
waterproofing material and investigate 
leaks at Tunnel B; and, 3) include 
testing services for Delta Air Lines' 
facilities at Boarding Area C - Total 
Not-To-Exceed Budget: $52-, 000. 



Type II Modification for Contract 1410EF, South Terminal 
Reconstruction, Phase II 

No. 87-0240 Contract modification to provide 

additional work for unforeseen 
conditions, new requirements and 
deficiencies in the plans and 
specifications - $127,594. 



Minutes, November 17, 1987, Page 6 



10. Bid Cal 



Contract No. 1944 



West Underpass - Rehabilitation of Drainage System 



No. 87-0241 



Resolution approving the scope, budget 
and schedule for Airport Contract No. 
1944 and authorizing the Director of 
Airports to call for bids when ready. 



1 . Resolution Confirming Establishment of Bureau of Temporary 
Exhibitions and Cultural Programs, Effective July 1, 1980 

No. 87-0242 



12. Resolution Approving Assignment of Lease of Pacific Southwest 
Airlines, Inc. to U.S. Air Group, Inc . 



No. 87-0243 



Resolution approving assignment of 
Lease #82-0120 by acquisition and 
merger from Pacific Southwest 
Airlines, Inc. to U.S. Air Group, Inc 



Item No. 13 was removed from the calendar. 

1 3. Resolution Modifying Lease - United Air Lines, Inc . 

Resolution modifying Lease and Use Agreement No. 82-0126 between 

United Air Lines, Inc. and Airport. 



4. Resolution Approving Assignment of Lease of Air Cal to American 
Ai rl i nes 

No. 87-0244 



1 5. Resolution Modifying Lease - American Airlines, Inc . 
No. 87-0245 



Resolution modifying Lease and Use 
Agreement No. 82-0111 between American 
Airlines, Inc. and Airpor.t. 



16. Resolution Modifying Lease - Trans Norld Airlines, Inc . 

No. 87-0246 Resolution modifying Lease and Use 

Agreement No. 82-0125 between Trans 
World Airlines, Inc. and Airport. 



17. Resolution Modifying Lease - Alaska Airlines, Inc . 
No. 87-0247 



Resolution modifying Lease and Use 
Agreement No. 82-0314 between Alaska 
Airlines, Inc. and Airport. 



Minutes, November 17, 1987, Page 7 



G. AGENDA I r EMS RELATING TO ADMINISTRATION, OPERATIONS & MAINTENANCE: 

Item No. 3 was unanimously adopted. 

3. Awar:i of Contract No. 1437 : 

Overlay Cargo Ramp and Taxiway 'B' 

No. 87-0235 Resolution awarding Contract No. 1437 

to Grade Way Construction in the 
amount of $862,545.00. 

Mr. Julian Andona, President of O'Grady Paving, told the Commission 

that the apparent low bidder, Gradeway, did not meet the minority 

goals. He disagreed with HRCs decision that Gradeway made a good 

faith effort arguing that the six other bidders did meet the goals. 

He said that the specifications require that all minorities must be 
pre-qual if ied. The subcontractor that Gradeway is using was not 
pre-qual i f ied. 

Commissioner Fleishell said that this is a matter solely within the 
discretion of the Human Rights Commission. 

Mr. Don Garibaldi, Airports General Counsel, agreed with 
Commissioner Fleishell. 

Commissioner Fleishell said that the Airport has not and could not 
overrule the Human Rights Commission in matters like this. He told 
Mr. Andona that the Human Rights Commission ruled against him and 
that would be the proper agency to appeal his case. The Airport is 
bound to HRCs decision so unless Mr. Andona has another basis for a 
protest the Airports Commission can do nothing. 



Mr 



Andona said that he feels the Human Rights Commission is wrong. 



Commissioner Stephens said that the Airports Commission is not an 
appellate body to the Human Rights Commission. He told Mr. Andona 
that he thought that there might be a way to appeal HRCs decision. 

Commissioner Goosby told Mr. Andona that he should make his appeal 
over the HRC staff, directly to the Human Rights Commission itself. 

Mr. Bayard Fong, Contract Compliance Representative with the Human 
Rights Commission, pointed out that the Human Rights Commission 
Director, Grant Mickens, has the sole discretion to make a ruling 
on this issue without the concurrence of the Commission. 

Commissioner Tsougarakis said that the Airport was not arguing that 
point. If Mr. Andona wants to protest, he must do so to the Human 
Rights Commission, not the Airports Commission. 

Mr. Turpen said that the Airport understands Mr. Andona' s concerns 
but is not in the position of verifying and certifying minorities. 

Mr. Andona said that he feels that the Human Rights Commission has 
gone against their own specifications which clearly states that 
they have to be pre-qual if ied. 

Mr. Turpen argued that that function is reserved for the Human 
Rights Commission. T he Airports Commission looks to the HRC to 
ensure that those evaluations are made. He told Mr. Andona that 
his concerns must be addressed to the HRC. 



Minutes, November 17, 1987, Page 8 



Mr. Andona asked where he must go after appealing to the Human 
Rights Commission. 

Mr. Garibaldi told Mr. Andona that he must then go to an attorney. 

Mr. Grant Mickens, Director of the Human Rights Commission, said 
that he met with Mr. Andona and his attorney and went over the 
issues that he suggested were flawed with respect to HRCs 
recommendation. He said he reviewed all the aspects and has 
reaffirmed his recommendation that Gradeway, the low bidder, is the 
eligible bidder. He said that there is no remedy to appeal to the 
Human Rights Commission as the regulation states that the Director 
has sole discretion in this matter. Mr. Andona does have the right 
to go to court. He said that the HRC has complied with all 
requirements in this case. 

Commissioner Goosby told Mr. Andona that the only power the 
Airports Commission has over the Human Rights Commission is to 
delay action in the hopes that HRC will take another look at the 
i ssue. 



I. CORRESPONDENCE: 

Mr. Turpen said that the Airports Commission has received a copy of the 
proposed noise regulation with attendant materials. That document was 
circulated to the community at large last Monday and is available for 
public comment. He said that there will be a public hearing on December 
1 after which the Commission can take the document under advisement and 
make its final decision on December 15. 

Mr. Turpen said that the Commission has received a series of comments 
which were based on the first draft noise regulation. The Commission 
can expect another series of comments which should begin to come in 
within the next few days. He felt that most comments will be submitted 
just prior to the December 1 Commission meeting. Staff will attempt to 
distill those comments and provide them to the Commission along with an 
executive summary. 

Commissioner Fleishell said that it would be helpful if Mr. Turpen 
indicated whether the submitted comments were resolved or compromised 
and why. He said that some of them were of great concern, i.e. the 
United Airlines Maintenance problem. 



ADJOURNMENT TO GO INTO CLOSED SESSION: 

There being no further calendared items before the Commission the 
meeting adjourned at 9:28 AM to go into closed session. 




tju 



ifcn Caramatti 

n ss ion Secretary 



Minutes, November 17, 1987, Page 9 



wn SAN FRANCISCO 
AIRPORTS COMMISSION 




DOCUMENTS DEPl 
WAR 4 1988 

SAN FRANCISCO 
PUBUC UB«A»V 



MINUTES 



DECEMBER 1, 1987 



DIANNE FEINSTEIN, MAYOR 

COMMISSIONERS 

MORRIS BERNSTEIN 

Prtsldtnt 

J. EDWARD FLEISHELL 

VlcrPrtsldtnl 

DR. Z.L GOOSBY 

ATHENA TSOUGARAKIS 

DON RICHARDS STEPHENS 



LOUIS A.TURPEN 

Director of Airports 



San Francisco International Airport 
San Francisco, California 9«n28 



Index 

of the Minutes 

Airports Commission 

December 1 , 1987 



CALENDAR 


AGENDA 




SECTION 


ITEM 


TITLE 


A. 




CALL TO ORDER 


B. 




ROLL CALL: 


C. 




ITEMS INITIAT 


D. 




ITEMS RELATIN 



Supplemental Appropriation 
Request for Outside Legal 
Services - $250,000 



RESOLUTION 
NUMBER 



OPERATIONS & MAINTENANCE: 

Award of Contract 141 6C, Delta 
Air Lines Facilities, South 
Terminal & Boarding Area 'C - 
$4,596,000 87-0250 



PAGE 



87-0251 



CONSENT CALENDAR OF ROUTINE 
ADMINISTRATIVE MATTERS: 

Resolution Modifying Lease - 
United Air Lines, Inc. 



87-0252 



Bid Call: Contract No. 1823 
New Security Facilities at 
Boarding Area 'D', International 
Terminal 87-0253 

Bid Call: Contract No. 1912 - 

Waterproofing Tunnel 'B' Lobby - 

South Terminal 87-0254 



6. 



PUBLIC HEARING: 
Host Option 



3-: 



CORRESPONDENCE: 

Denial of SF0 Airporter's 
Request to Have Their Fees 
Waived. 



CLOSED SESSION: 



ADJOURNMENT: 



Minutes 

of the 

Airports Commission Meeting 

December 1 , 1987 



CALL TO ORDER: 

The regular meeting of the Airports Commission was called to order at 
9:00 A.M. in Room 282, City Hall, San Francisco, Ca. 



B. ROLL CALL: 

Present: Morris Bernstein, President 

J. Edward Fleishell, Vice President 
Z. L. Goosby 
Athena Tsougarakis 
Don Richards Stephens 



C. ITEMS INITIATED BY COMMISSIONERS: 

There were no items initiated by Commissioners 



ITEMS RELATING TO ADMINISTRATION, OPERATIONS & MAINTENANCE: 

The following items were unanimously adopted. 

1 . Award of Contract 1416C, Delta Air Lines Facilities, South Terminal 
Boarding Area 'C - $4,596,000 

No. 87-0250 Pending Human Rights Commission's 

approval, Airports Commission will 
award Contract 1416C to Barnes 
Construction for the total amount of 
$4,596,000. Four bids were received 
on November 16, 1987, ranging from 
$4,596,000 to $4,928,137. Approved 
budget is $5,000,000. 



Item No. 2 was put over to the end of the meeting and was then unanimously 
adopted. 

2. Supplemental Apropriation Request for Outside Legal Services - 
$250,000 

No. 87-0251 

Minutes, December 1, 1987, Page 2 



E. CONSENT CALENDAR OF ROUTINE ADMINISTRATIVE MATTERS: 
The following items were unanimously adopted. 

3. Resolution Modifying Lease - United Air Lines, Inc. 

No. 87-0252 Resolution modifying Lease and Use 

Agreement No. 82-0126 between United 
Air Lines, Inc. and Airport. 

4. Bid Call : Contract No. 1823 

New Security Facilities at Boarding Area 'D' - International 
Terminal 

No. 87-0253 Construction of an enclosed security 

check facility to meet the new 
security requirements for 
international passengers. 



5. Bid Call : Contract No. 1912 

Waterproofing Tunnel 'B' Lobby - South Terminal 

No. 87-0254 Contract to waterproof concrete walls 

at Tunnel 'B' lobby and to provide 
architectural finishes. 



PUBLIC HEARING: 

The Public Hearing was called to order at 9:03 AM and closed at 9:34 AM, 
there being no further public comments. 



6. Host Option 



Hearing concerning Host International 
Food and Beverage Lease option. 



Mr. Lou Turpen, Airport Director, said that staff has been working 
with Host/Marriott on a proposed package which would Include the 
turnover of certain spaces to minority and women businesses as well 
as an agreement for a pricing mechanism in exchange for' the 
Commission's exercise of an existing option. This officially opens 
the 30-day comment period which the Commission requested. Mr. 
Turpen recommended that if no one wished to address this item that 
the Commission take the matter under advisement. He said it would 
be recalendared either on January 5 or January 19. In the Interim, 
staff will share with the Commission whatever comments it receives 
from the publ ic. 

Commissioner Goosby asked if Host would be holding its meeting in 
January and if this item would be brought back to the Commission 
after that meeting. 

Mr. Turpen responded that he thought Host's meeting was scheduled 
for January 11 and the item would be brought back to the Commission 
after that date. 



Minutes, December 1, 1987, Page 3 



Commissioner Stephens asked when the Commission would receive 
staff's economic analysis. 

Mr. Turpen responded that the Commission should receive it within 
the next couple of weeks. Public comments will be provided as they 
are received, along with a summary of those comments. 

Commissioner Goosby said it was his understanding that staff's 
analysis would equate the dollar amount to the space. 

Mr. Turpen said that staff was presently looking at 36 percent of 
the space and about 36 percent of the gross revenues. 

Commissioner Fleishell said he would like to see a copy of Host's 
lease. He said he was concerned about this extension. The Airport 
has not given 10 years leases to anyone in the last 10 years. The 
idea was to keep control of the concessions by giving five-year 
leases and five-year options at the Commission's option. With a 
monopoly on food and beverage at the Airport, he said that they 
should be laughed out of the room for requesting a 17-year lease . 

Mr. Turpen responded that this proposal was made in the best 
interest of the City, the Airport and its patrons. It is up to the 
Commission to accept or reject staff's suggestion. 

Commissioner Fleishell said that when he first joined the 
Commission nine years ago one concession had a monopoly on flowers, 
one had a monopoly on candy, and one had a monopoly on the gift 
shop. Now, concessions are bid by terminal. In this instance, 
instead of taking steps to terminate a monopoly we are extending 
the lease seven years before it expires. He said he was concerned 
about this proposal . 

Commissioner Fleishell also reminded the Commission that when 
Hilton wanted to extend its lease a few years ago and build 
additional units, which would have produced millions of additional 
dollars in revenue to the Airport, the Airport turned Hilton down 
because they wouldn't give up their monopoly. 

Commissioner Fleishell asked to see a copy of the lease. 

Commissioner Stephens agreed with Commissioner Fleishell. He felt 
that from a real estate standpoint the Airport would be better off 
entering into shorter leases. He had serious reservations about 
extending this lease and Host's monopoly position. He said he 
would rather wait out the seven years, bid the lease and hopefully 
end up with a variety of different purveyors in the terminals. 

Commissioner Goosby said he brought this point up two months ago 
without comment by other members of the Commission. He said that 
he attended a meeting at the Airport with current Airport 
concessionaires and interested bidders and not one person at that 
meeting made a comment against proceeding. He said that there was 
a lot of concern as to whether or not the liquor should go with the 
food, whether the dollar amount is accurate, the representation of 
the space, the terms of the sublease, and who will provide food for 
the airlines. In private conversations with the prospective 
bidders he was told that they do not feel that if they had to 
compete with Dobbs, Host or other large food concerns 1n seven 
years time, that they would end up with more than 30 percent of the 
concessions at the Airport, nor would they receive the financial 
assistance Host is offering. He said that the percentage bothers 
him. He does not want it to be less than what is called for in the 
City ordinance. 



Minutes, December 1, 1987, Page 4 



Commissioner Goosby said that he originally thought that the lease 
should expire so that possibly more minorities might then have a 
greater chance at bidding, even if it were bid by terminal. He 
said he was no longer certain that minorities would be better off. 

Commissioner Goosby asked when the last extension was granted. 

Mr. Turpen said that the lease was re-bid in 1975. 

Mr. Jerry Copelan, Airport Property Manager, responded that the bid 
also included the commissary facilities. 

Mr. Turpen added that Host started at the Airport in 1954. 

Commissioner Goosby thought this was the original lease from 1954. 

Commissioner Fleishell also thought that the lease had been 
extended in 1975, not re-bid. He asked that the paperwork be 
pulled so the question could be cleared up. He also asked how 
staff arrived at the $1 .345-mi 1 1 ion. He felt that the same system 
should be used for each sublease. He said that once the lease is 
extended, the Airport will have limited control over how succeeding 
operations are priced. 

Commissioner Tsougarakis reminded the Commission that there should 
be equal concern over the quality of food. Although Host does an 
adequate job, she felt it might be beneficial to have different 
concessionaires as they would provide incentives for improving 
quality Airport-wide as well as possibly lowering prices. 

Mr. Turpen explained that an opportunity has presented itself to 
make these changes now rather than waiting until 1994. The 
Commission must decide if the proposition is attractive enough to 
move ahead. Staff is trying to provide the information necessary 
to make that determination. 

Commissioner Stephens said he had no idea that Host had been at the 
Airport for that period of time without any competitive bidding. 
He said that he was against this from the start. He felt it would 
work to Host's advantage much more than to anyone elses. He said 
that since this has not been competitively bid since 1954, the 
Airport did not know the real value of the lease. He felt it would 
be worthwhile to hire Coldwell Banker, Grupp and Ellis or Cushman 
and Wakefield to give us an idea of its value before giving 
anything up. 

Mr. Turpen said he did not know how to respond to Commissioner 
Stephens's comments. He said that there are a lot of variables 
that must go into that evaluation. There would be more value in it 
for a company coming in with a lower labor cost. 

Commissioner Stephens said that restaurant revenues generally were 
a function of volume. How much money an operator makes is a 
function of what they charge to the company. If the chairman's jet 
is charged to the restaurant, they won't break even. If it's 
allocated to their whole system, they will. 

Commissioner Stephens said he was very opposed to this and he has 
not heard one argument from staff that makes him feel that it would 
be a good decision in the long run. In the short run it may be a 
positive move as it allows part of the Airport to be operated by 
minorities. However, he was not certain that he wanted to give up 
10 years of revenue to the Airport to accelerate a program by seven 
years. He felt that the Airport could probably get a better deal 
if it were bid in 1994. 

Minutes, December 1, 1987, Page 5 



Mr. Turpen said that if the Commission's objective is to secure 
revenue through food service then clearly the Commission might want 
to take a look at re-bidding it in 10 years. If, as he suggests, 
the Commission views reasonable prices and good quality as a part 
of food service, then the Commission must take a look at what can 
be done today to improve that situation. 

Mr. Turpen said that the suggestion that this might be bid in 1994 
as a series of individual packages has been made before. The only 
caution in that regard is that our ability to service those 
concessions is severely limited, physically. Presently, the 
Airport has some fairly tight controls on Host because they access 
the terminal and provide service from the airfield side. We can 
accommodate limited service through the front door but we could not 
accommodate the volume of service that would be necessary. He felt 
that, in any event, the Commission will have to look at some type 
of prime sub-relationship in 1994, if only from the standpoint of 
the logistics involved. 

Commissioner Fleishell asked if the Airport has seen the numbers on 
this particular restaurant. 

Ms. Gittens responded that the Commission should take a step back 
to what it is trying to accomplish. The so-called value or cost is 
the undepreciated value of the cost of the improvements, subject to 
our audits. With regard to the issue of the balance sheet, Ms. 
Gittens responded that staff does not have that information. In 
response to individuals at the conference, as well as individuals 
who have addressed the Commission, staff tried to draw enough data 
and detail on Host's current operation so that a potential new 
operator could try to assess what his/her cost would be. 

Commissioner Fleishell said that the last three operating 
statements are needed to determine value. 

Ms. Gittens responded that this was not intended to determine the 
value of the land. 

Commissioner Fleishell responded that it was not the land but the 
value of the $1 .345-mi 1 1 ion price. Would this be a good price for 
a minority? The Commission has an obligation to make sure that the 
price is realistic. 

Commissioner Bernstein felt that more comprehensive information 
should be provided the Commission. This item was meant as an 
opportunity for the public to provide the Commission with input. 

Commissioner Fleishell asked if the lease includes Host's other 
operations at the Airport, such as providing food for the airlines. 

Ms. Gittens responded that it does include in-flight kitchens. 

Commissioner Bernstein asked if prices are ever checked at the 
Airport. 

Ms. Gittens responded that prices are checked. She added that 
certain leases have price controls. 

Mr. Turpen said that the Commission has always been desirous of 
quality food service and reasonable prices and if those were the 
Commission's objectives he felt they could support this proposal. 
He said that if the Commission prefers that no more staff time and 
resources be devoted to this effort, he will comply. 



Minutes, December 1, 1987, Page 6 



Mr. Turpen said that food service has been the one area most 
criticized by passengers over the past five or six years and this 
is an opportunity to correct the situation. It is not perfect, nor 
is it complete. He reminded the Commission that he presented this 
proposal at an October 1985 Commission meeting. The Commission 
told him to proceed. This is the fifth time this matter has come 
before the Commission since that meeting and on each occasion he 
was instructed him to move ahead. 

Commissioner Goosby said he wanted to proceed. The Commission has 
a responsibility to interpret the comments of the community and to 
make a judgment. He felt that the comments made by Commissioners 
Fleishell and Stephens should be seriously considered. 

Commissioner Goosby said that he read Grant Mickens letter in which 
he expressed concern over the 30/10 percentage. He hoped that the 
Commission would come to a conclusion by January. 

Commissioner Bernstein asked for a copy of the lease as well as the 
figures on how much each restaurant is doing and what it could do. 

Mr. Henry Chan, local restaurateur, told the Commission that this 
is very positive, from the minority standpoint. Host is providing 
the best opportunity possible to the minority community to operate 
at the Airport and compete with them. He said that he is not 
familiar with the formal bidding process and he would not be able 
to compete with larger companies. With Host's assistance, guidance 
and cooperation this would be a good start for a minority. 



CLOSED SESSION: 

The meeting recessed at 9:34 AM to go into closed session and reconvened 
at 10:00 AM. 



CORRESPONDENCE: 

Mr. Turpen brought up Mr. Leonoudakis' s letter requesting that SF0 
Airporter's fees be waived. 

The Commission denied Mr. Leonoudakis's request. 



ADJOURNMENT: 

There being no further calendared business before the Commission the 
meeting adjourned at 10:05 AM. 



i an Caramatti 
Commission Secretary 



Minutes, December 1, 1987, Page 7 






SAN FRANCISCO 
AIRPORTS COMMISSION 




MINUTES 



DECEMBER 16, 1986 



POCUM&WTS DEPT. 

MAR 3 W 



$*n fiihi 



»w.-wO 



PUDUC LIBRARY 



DIANNE FEINSTEIN, MAYOR 

COMMISSIONERS 

MORRIS BERNSTEIN 

President 

J. EOWARD FLEISHELL 

Vice-President 

OR. Z.L. GOOSBY 

ATHENA TSOUGARAKIS 

DON RICHARDS STEPHENS 

LOUIS A.TURPEIM 

Director of Airports 

San Francisco International Airport 
San Francisco, California 94128 



Index 

of the Minutes 

Airports Commission 

December 16, 1986 



CALENDAR AGENDA RESOLUTION 

SECTION ITEM TITLE NUMBER PAGE 



A. CALL TO ORDER: 

B. ROLL CALL: 

C ITEMS INITIATED BY COMMISSIONERS: 



ITEMS RELATING TO ADMINISTRATION, 
OPERATIONS & MAINTENANCE: 

Authorization to Receive Bids 

for International Terminal & 

South Terminal Shoeshine 

Leases 86-0276 

Award of Contract No. 1752: 
Maintenance Building Rooding - 
Republic Airlines Hangar 



E. CONSENT CALENDAR OF ROUTINE 

ADMINISTRATIVE MATTERS: 

3. Settlement of Unl 1 tlgated 

Claim of City & County of 

San Francisco against Paul 

Stange In the Amount of 

$9,997.38 86-0277 3 

4. Transfer Miscellaneous 
Electrical Work from Contract 

1 41 6AB-R (Boarding Area 'C to 

Contract 1410EF (South Terminal 

Renovation Phase II) - No Change 

in Total Cost of Contracts 86-0278 3 

5. Retirement Resolution for Sam 

Parker 86-0279 3 

6. Retirement Resolution for Paula 

Thomas 86-0280 3 



CORRESPONDENCE: 

Cart Design 3-4 

Commission Attendance at 

National Conferences 4 



ADJOURNMENT TO GO INTO CLOSED 
SESSION: 



Minutes 

of the 

Airports Commission Meeting 

December 16, 1986 



CALL TO ORDER: 

The regular meeting of the Airports Commission was called to order at 
9:00 A.M. in Room 282, City Hall, San Francisco, Ca . 



ROLL CALL 



Present: J. Edward Fleishell, Vice President 

Z.L. Goosby 
Athena Tsougarakis 
Don Richards Stephens 

Morris Bernstein, President, arrived 
at 9:15 AM. 



C. ITEMS INITIATED BY COMMISSIONERS: 

There were no items initiated by Commissioners 



ITEMS RELATING TO ADMINISTRATION, OPERATIONS AND MAINTENANCE: 

Item No. 1 was unanimously adopted. 

1. Authorization to Receive Bids for International Terminal and South 
Terminal Shoeshine Leases 

No. 86-0276 Resolution approving leasehold 

specifications and authorizing 
Director to receive bids for: 

International Terminal Shoeshine 

Lease ; 

South Terminal Shoeshine Lease 

Mr. Lou Turpen, Airport Director, told the Commission that an 
evaluation of the liability coverage of independent contractors was 
made and included in the report. 



Item No. 2 was put over. 

Award of Contract No. 1752: 

Maintenance Building Roofing - Republic Airlines Hangar 



Resolution awarding Contract No. 1752 
to Royal Roofing Co., Inc. in the 
amount of $89,980.00 to $149,000.00. 

Eight bids were received on November 
26, 1986 with amount ranging from 
$89,980.00 to $149,000.00. 



CONSENT CALENDAR OF ROUTINE ADMINISTRATIVE MATTERS: 

The following items were unanimously adopted. 

3. Settlement of Unlitigated Claim of City and County of San Francisco 
Against Paul Stange in the Amount of $9,997.38 

No. 86-0277 Resolution approving settlement of 

unlitigated claim of City and County 
of San Francisco against Paul Stange 
whereby Paul Stange has repaired the 
North Terminal to the satisfaction of 
Airport Commission at a cost of 
$9,997.38. 



Transfer Miscellaneous Electrical Work from Contract 1416AB-R 
(Boarding Area 'C') to Contract 1410EF (South Terminal Renovation 
Phase II) - No Change in Total Cost of Contracts 

No. 86-0278 Contract 1416AB-R will be debited 

$50,000 anc Contract 1410EF will be 
credited the same amount. The 
transfer is necessary for better 
coordination of the trades. 



5. Retirement Resolution for Sam Parker 
No. 86-0279 

6. Retirement Resolution for Paula Thomas 
No. 86-0280 



CORRESPONDENCE: 

Mr. Turpen said that he has received a letter from Smarte Carte regarding 
the new model 1035 cart which Is an L-shaped design. 



Minutes, December 16, 1986, Page 3 



Commissioner F 1 e i she 1 1 commented that the Commission has explained the 
design it wants to Smarte Carte. He asked Mr. Turpen to talk to Mr. 
Pastian and tell him that this design is not acceptable to the Commission 
and staff is not to waste time on it. 



Commissioner Goosby expressed an interest in members of the Commission 
attending national conferences. He asked 1f the Mayor still had a policy 
that Commission members not attend conferences on City business. If this 
was the case he thought it was an unfortunate policy as he felt it 
important that Commissioners be current with issues 1n the Industry. 



H. ADJOURNMENT TO GO INTO CLOSED SESSION: 

There being no further calendared business before the Commission the 
meeting adjourned at 9:20 AM to go into closed session. 



Sandra Crumpler 

Acting Commission Secretary 



Minutes, December 16, 1986, Page 4 



SAN FRANCISCO 
AIRPORTS COMMISSION 




EPT. 

JAN 2 5 1988 

-iCO 



MINUTES 



DECEMBER 15, 1987 



DIANNE FEINSTEIN, MAYOR 

COMMISSIONERS 

MORRIS BERNSTEIN 

President 

J. EOWARO FLEISHELL 

Vice-President 

DR. Z.L. GOOSBY 

ATHENA TSOUGAR AKIS 

DON RICHARDS STEPHENS 

LOUIS A.TURPEINJ 

Director of Airports 



San Francisco International Airport 
San Francisco, California 94128 



Index 

of the Minutes 

Airports Commission 

December 15 1987 



CALENDAR AGENDA RESOLUTION 

SECTION ITEM TITLE NUMBER PAGE 



CALL TO ORDER: 



ROLL CALL: 



ADOPTION OF MINUTES: 



Regular meeting of 

November 17, 1987 87-0255 



D. ITEMS INITIATED BY COMMISSIONERS 

Commendation for Airport Duty 

Managers 87-0256 



PUBLIC HEARING: 

1. Hearing on Proposed Airport 
Noise Regulation 
(see attachment) 



CORRESPONDENCE: 



ADJOURNMENT TO GO INTO 
CLOSED SESSION: 



Minutes 

of the 

Airports Commission Meeting 

December 15, 1987 



CALL TO ORDER: 

The regular meeting of the Airports Commission was called to order at 
9:00 A.M. in Room 282, City Hall, San Francisco, Ca. 



B. ROLL CALL: 

Present: Morris Bernstein, President 

J. Edward Fleishell, Vice President 
Z. L. Goosby 
Athena Tsougarakis 

Absent: Don Richards Stephens 



ADOPTION OF MINUTES: 

The minutes of the regular meeting of November 17, 1987 were adopted by 
order of the Commission President. 

No. 87-0255 



D. ITEMS INITIATED BY COMMISSIONERS: 

Commissioner Fleishell introduced a resolution commending the Airport Duty 
Managers for their work. 

The resolution was unanimously adopted. 

No. 87-0256 



PUBLIC HEARING: 

The Public Hearing was opened at 9:07 AM and closed at 10:35 AM, after all 
public testimony had been received. Attached is a certified court 
reporters transcript on Item No. 1. 

1 . Hearing on Proposed Airport Noise Regulation 



Minutes, December 15. 1987, Page 2 



F. CORRESPONDENCE: 

There was no discussion by the Commission. 



G. ADJOURNMENT TO GO INTO CLOSED SESSION: 

There being no further calendared items before the Commission the meeting 
adjourned at 10:35 AM to go into closed session. 



A 



J£in Caramatti 
doj/imission Secretary 
J 



Minutes, December 15, 1987, Page 3 



CITY AND COUNTY OF SAN FRANCISCO 
DIANNE FEINSTEIN, MAYOR 

000 



SAN FRANCISCO INTERNATIONAL AIRPORT 



NQISE_ABATEMENT_RE£y.LATIQN 



PUBLIC BEARING 



REPORTER'S TRANSCRIPT OF PROCEEDINGS 
Tuesday, December 15, 1987, 9:08 a . m 

oOo 



(1IlSju^uu i ^lI 



Reported By CBARLOTTE CERVANTEZ, Notary Public 
County of Alameda, State of California 
C.S.R. License No. 4486 

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BE IT REMEMBERED that on Tuesday, 
December 15, 1987, commencing at the hour of 9:08 a.m. 
thereof, at The City Hall in and for the City and County 
of San Francisco, Room 282, San Francisco, California, 
before me CBARLOTTE CERVANTEZ, a Notary Public in and for 
the County of Alameda, State of California, personally 
appeared the hereinafter named parties at the following 
proceedings . 



£A N_F R A NC I £CQ_ I NTE R NAT I QNAL_ A I RPQRT.QQMM I £S I Q NERS 



BONORABLE MORRIS BERNSTEIN, President 

BONORABLE DR. Z.L. GOOSBY, Commissioner 

BONORABLE J. EDWARD FLEISHELL, Commissioner 

BONORABLE ATHENA TSOUG ARA K IS , Commissioner 

BONORABLE DON RICBARDS STEPHENS, Commissioner 
(was unable to attend) 



LOUIS A. TURPEN, Director of Airports 
DONALD GARIBALDI, Airport General Counsel 
STEPBEN ROSENTHAL, Outside Counsel 
JEAN CARAMATTI, Airports Commission Secretary 



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E&BTICIE&MTS 



&QDIE£JCE_£PEAKEE£ 



E&GE 



John W. Simpson 
Gary Gor der 
Roman Gankin 
James T . Murphy 
Barry S 1 akman 
Shelley Kessler 
Dick Tabery 
John E. Willi ams 
Her ber t Rose ntha 1 
Vance Fort 
William Rose 
Duane Spence 
Jerry Ne 1 son 
David Carbone 
Roger Chinn 
Ralph Dill 
She 1 ley Kess ler 
Monte Lazarus 



6 
10 
11 
13 
18 
22 
23 
28 
31 
34 
39 
40 
43 
44 
47 
50 
62 
63 



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EEQCEEDIHSS 

MS. CARAMATTI : Item one, the public hearing; 
hearing on the proposed airport noise regulation. 

MR. BERNSTEIN: We will lead off with that 
one . A 11 r ight? 

Ladies and gentlemen, on behalf of the entire 
Airports Commission I'd like to welcome representatives of 
the F.A.A., of the air carrier service at San Francisco 
International Airport, the neighbors of the airport, and 
members of the public. 

As you are aware, the Commission today is 
holding its public hearing on our proposed new noise 
abatement regulation, which will supersede the airport's 
current regulation, Resolution 78-0131, and is designed to 
establish progressive reasonable noise standards here at 
San Francisco International Airport for the balance of 
this centur y . 

The Commission and the Airport Administration 
have devoted considerable time and substantial resources 
in an effort to develop a regulation that we feel balances 
our obligation on the state laws, to continue, to reduce 
the impact of aircraft noise on the airport community, and 
to reserve a high level of aviation service currently 
provided for at San Francisco. It is important to the 
economy of the entire Bay Area. 



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In pursuit of that goal, the Commission 
released for public comment the preliminary draft of the 
new noise abatement regulation on June 1 of this year. In 
response to our invitation, we received a large number of 
detailed and careful comments on that draft, and as a 
result of these comments we made extensive changes in the 
regulation. 

We also directed our acoustical consultants, 
the Perry Company and the Ken Eldid Engineering 
Corporation to prepare contours and analysis showing what 
the noise environment at the San Francisco International 
Airport would look like both with the new regulation in 
effect and without it. 

On November 6th, 1967 -- 

MS. TSOUGARAKIS : 1987. 

MR. BERNSTEIN: — we released the latest 
version of the proposed regulations, and we invited 
further comment from all interested persons. We also 
released a statement, explaining the basis for our revised 
regulation and responding to the public comments. 

In addition, we voluntarily made available for 
inspection here at the Commission extensive technical 
data, noise contours and reports prepared by our 
consultants and used by the Commission in the development 
of a new regulations. 

Finally, at the request of several of the air 



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carriers, we extended the comment period until last 
Friday, December 11, 1987, to afford all persons 
sufficient time to review the latest version of the 
regulation and the noise data and reports prepared by our 
consu 1 ta nts . 

I am pleased to report today that in response 
to this second invitation for comments, we have once again 
received extensive, helpful, written comments from the 
community, the air carriers, and other persons interested 
in the airport noise environment. 

We have been carefully reviewing these 
comments as they were received, and we may make some 
further changes in the regulations to respond to concerns 
raised in them. 

Because of the relatively large number of 
persons interested in testifying on the new regulation 
today, the Commission must adhere strictly to its usual 
three-minute rule, limiting each person to three minutes, 
in order to provide as many as possible an opportunity to 
address the regulations. If someone begins to exceed his 
or her three-minute allotment, one of our staff will be 
forced to interrupt the speakers. Again, we thank you for 
your participation in this process. 

I must beg your indulgence because I did too 
much talking, or I did too much of something. So if it 
hasn't been clear, I'd be glad to clear up anything that 



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1 was said. All right? 

2 The first speaker, Mr. John Simpson, of the 

3 Burlington Air Express from Washington, D.C. 
4 

5 2QEfcJ_Bx_£IMP£QB 

6 MR. SIMPSON: Good morning, ladies and 

7 gent lemen -- 

8 MR. BERNSTEIN: Would you give your name, 

9 please . 

10 MR. SIMPSON: Yes, my name is John W. Simpson. 

11 As you indicated, I representing Burlington Air Express. 

12 Is this working? Can you hear me all right? I'm not sure 

13 I ' ve been heard . 

14 In a sense I guess we're the skunks at a 

15 garden party here. As you know, we have a litigation 

16 going before the F.A.A., been going for a year or two, and 

17 I must confesses I think it's one of the silliest pieces 

18 of litigation I've been involved in. I've been in 

19 practice some 35 years, and I've never seen anything 
that's quite as inane; because there's really no reason 
for this litigation, and enormous amount of studies, and 
money my clients and you are spending on legal fees. 

The problem is of course the Q-707. We'll 
have Mr. Gary Gorder here from Shannon Engineering, and 
he'll talk on the more technical details. Frankly I don't 
pretend to be a noise expert, but what he tells me is that 



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1 your staff has used the wrong data base in getting to your 

2 noise numbers and arriving at the conclusion that the 

3 Q-707 would be unacceptable at your airport. 

4 When you use the correct noise numbers, this 

5 airplane is much the same as a good many other Stage 2 

6 aircraft. There are a number that are much noisier, and 

7 in particular, the Q-727 200 with the JTAD-15 engine -- 

8 which is the most common 727 200 aircraft. It's noisier 

9 than our aircraft. 

10 Now, we would like the opportunity to sit down 

11 with you and go over the numbers and try to resolve this 

12 without a lot of litigation. It's going to take months if 

13 we're going to go into litigation, to fight over this. 

14 It's a very complex matter, and it really isn't going to 

15 get us very far. 

16 A year and a half ago Mr. Turpen indicated to 

17 me that the Q-707 would be very noisy at full takeoff 

18 power without the power cutback. I told him that I 

19 thought his numbers were inaccurate. 

I checked and was told that the numbers were 
incorrect. So I called up and I said "Let's get together 
before we get in an expensive litigation; let's sit down," 
and "we'll make all of the data available to you." You 
have to have proprietary data from Shannon Engineering to 
do this thing properly. It can't be done without it. 

We'll give you all that, we'll answer all your 



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questions. "Let's get your noise experts together with 
our noise experts, and let's see if we can't talk this 
out; and maybe we'll reach an agreement, maybe we won't; 
but at least we have tried, before we run up thousands of 
dollars in legal fees." 

So I came out here with the understanding that 
we were going to do that. I flew out from Washington. We 
flew two noise experts down from Seattle. The chief pilot 
flew in from Atlanta. We had a noise man from Poporanic, 
from Orange County, and several people from Burlington Air 
Express from Orange County. 

Unfortunately, when we got here, we found that 
Mr. Turpen and his attorney -- We made a presentation to 
him, and he said "Thank you for your presentation, we'll 
take it into account." 

And I said "Well, we want to talk with your 
noise experts," and they refused to do that. 

Now to me, that's silly. We're going to run 
up enormous legal expenses here. I suppose I shouldn't 
complain, because you're going to make me rich off of 
this. But I wanted to tell you that you shouldn't feel 
any obligation to make me be rich over this litigation. 

We do have other matters in the office, and 
we'd be glad to have a lot of work. We can do without 
getting into needless battles over things which shouldn't 
be ba tt led over . 



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So we'd like the suggestion to be that we get 
your noise experts, put them together with ours. We'd 
like to meet with you, some of the Commission, with your 
staff if you wish. We'd like to see if we can't reach an 
agreement as to what the facts are before we go forward 
with this litigation which is now pending. 

Mr. Gorder of Shannon Engineering will be 
here, and he will talk in more detail on it. I put our 
comments in writing, so I won't repeat all those. But I 
might also say that we'd join in comments which are being 
made by A.T.A. and D.H.L. and others here who have much 
the same problem that we have. 

But we have a special problem, which we really 
would like to work out with you — if it's possible to do 
it before we go forward with the hearings in Washington, 
which are going to be very, very long and very expensive. 

I think that's everything I have to say right 
now, unless you have some questions. 

MP. BERNSTEIN: Thank you, Mr. Simpson. 

Any questions? 

MS. TSOUGARAKIS : No. 

MR. BERNSTEIN: Thank you, Mr. Simpson. 

MR. TURPEN: Thank you. 

MR. SIMPSON: Thank you. 

MR. BERNSTEIN: Next, Mr. Gary Gorder of 
Shannon Engineering. 



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S&EX-GQEDEE 

MR. GORDER : Hi, I'm with Shannon Engineering, 
I'm employed as Acoustical Consultant there. In 
association with Tracor and CompTran we developed and 
certificated the quiet 707 airplanes. 

I'd like to follow up on John Simpson's 
comments regarding the Commission's prohibition of 
Burlington Air Express' quiet 707 at the airport. In 
particular what I'd like to comment on are technical data 
that have been provided to Mr. Turpen by Mr. H.L. James of 
the Commission — I believe he's the noise abatement 
officer -- and point out that that data is inaccurate and 
has probably led to some faulty conclusions. 

The Commission has claimed that the full power 
takeoff noise level for the 707 is on the order of 110 
to 110.6 E.P.N.D.B. at a maximum brake release gross 
weight of about 290,000 pounds. 

We have data that shows that noise level is 
actually 105.5, and that data has been approved by the 
F.A.A. and is used as the basis for airplane flight manual 
substantiation. 

As well, they've claimed that the quiet 707 
is noisier at full power takeoff than the 727 200 with 
JTAD-15 engines. We can show that at the maximum 
operating weight for the 727 200 of 109,000 pounds, that 
airplane makes a full power takeoff noise level of 



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about 109.8 E.P.N.D.B., which puts it about four 
E.P.N.D.B. higher than the quiet 707. 

Their data claims that the 727 at full power 
noise level is only 101 E.P.N.D.B. and has no reference. 
Our data is derived from Boeing Company, who manufactured 
data for the 727. Clearly the quiet 707 is not the 
noisiest airplane operating or would not be the noisiest 
airplane operating at San Francisco Airport. 

This data we have, as John pointed out, we 
have tried to present to Mr. Turpen in the past, actually 
have presented to Mr. Turpen in the past, and we feel that 
some of it has not been passed on to the Commission. We 
just, today, wanted to make sure the Commission understood 
that the quiet 707 airplane would not be the noisiest 
airplane at San Francisco. Thank you. 

MR. BERNSTEIN: Thank you. 

Any questi ons ? 

MS. TSOUGARAKIS: No. 

MR. BERNSTEIN: Mr. Gankin, San Mateo County 
Planning Commission, the Chief Planner. Mr. Gankin, 
please ? 

EQMA.S_G.A_N.KIH 
MR. BANKIN: Mr. President, I'm Roman Gankin, 
I'm with the San Mateo Planning Commission division, and 
I'm here to represent the Board of Supervisors of 



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12 



San Mateo County. They're having a board meeting today, 
and they asked me to be here in their stand. 

We have prepared a Resolution. The Board took 
action last Tuesday on this -- and I will be passing this 
out to you -- in support of your new noise regulations. 
We certainly hope that these noise regulations, as 
provided and as possibly amended, will provide for a 

8 quieter environment for our local citizenry and around the 

9 air por t . 

10 We are quite concerned about that, and we want 

11 to make sure that these regulations are in fact 

12 implemented in the fashion that they have been proposed. 

13 We're in full support of those regulations. 

14 I don't have anything more to say. 

15 MS. TSOUGARAFIS : Thank you. 

16 MR. BERNSTEIN: Thank you, Mr. Gankin. 

17 Next was Jim Chamberlin. Where are you, Jim? 

18 MR. CHAMBERLIN: Mr. President, I would like 

19 to defer to A.T.A. as the lead-off member for the airline 

20 representatives here. May I, please? 
MR. TURPEN : Mr. Hannon? Who is speaking for 

them , sir ? 

MR. CBAMBERLIN: Ralph Dow. 

MR. MURPBY: Jim Murphy. 

MR. CBAMBERLIN: Jim Murphy, I'm sorry. 

MS. TSOUGARAFIS: Why don't we call on 



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13 



Mr . Mur phy . 



then . 



MR. TURPEN: Let's call on Mr. Murphy now, 
MR. BERNSTEIN: Jim Murphy. Mr. Murphy? 



iftMES_I*_8SUEEEX 
MR. MORPBY : Mr. Bernstein, Commission 

members, I beg your indulgence for maybe four minutes, 
because I'm speaking on behalf of 19 airlines. It saves 
you a great deal of time that way. 

MR. TURPEN: State your name for the record, 
please . 

MR. MURPBY: Yes, James T. Murphy, 
Vice-President Air Space and Airports of the Air Transport 
Association. 

Once again I would repeat I am speaking on 
behalf of our 19 members represented here, to give an 
overview of our reaction to the proposed noise abatement 
regulation. You'll be hearing in more detail from 
affected individual carriers as to their views on this. 

I think it will come as no surprise to the 
Commission that the A.T.A. and its members are opposed to 
this proposal. Our preliminary comments of July 29th and 
our final comments of December 11th argue, I believe 
persuasively, that the proposal before you is flawed. 

Specifically the proposal fails to quantify 



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14 



the effects of the proposed restrictions on airline 
services to and from the Bay Area and virtually ignores 
the impact on the economy of the Bay Area. 

It does not weigh the burden of restrictions 
versus the meager benefits to the airport's noise 
environment. We find that the ramrod approach 
marking this particular effort quite disheartening in the 
long history of cooperation among the airports, the 
F.A.A., and what we feel are significant environmental 
achievements of these efforts. 

One very important reason of the achievements 
has been the collective efforts of the airlines to conduct 
a very, very high percentage of their operations here with 
newer, quieter, Stage 3 aircraft. 

As a result -- and this might be dangerous to 
say in this setting, but I will -- San Francisco Airport 
has the least noise problem of the large California 
airports. The area of incompatible land use near the 
airport is 1.4 square miles, and the number of homes 
within this area is far beneath the targets imposed by 
Ca 1 trans . 

I have had the opportunity to testify at 
hearings of this nature in Boston, Denver and' Minneapolis, 
where the core of the proposals was growth only with 
S tage 3 aircraft . 

At the present time the member airlines of 



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A.T.A. have on firm order or option more than 30 billion 
dollars worth of Stage 3 aircraft. They are being 
procured as rapidly as prudent, financial arrangements can 
be made. Yet community after community strive to permit 
growth only with these aircraft. 

These uncoordinated actions burden interstate 
and foreign commerce, are unfair to other localities, 
certainly raise airline operating costs, and in the end 
disserve travelers. 

One final note, and I think very ironical, the 
proposal before you would bar from the airport the latest 
technology yet to be delivered, Stage 3 747 aircraft, from 
nighttime operations in the not too distant future. 

Perhaps of greater importance to the residents 
of the Bay Area, this rule would adversely impact 
significant elements of the import and export business 
and, would severely affect the area's second largest 
employer, the United Airlines Maintenance Operations 
Ce nter . 

John Williams of Northwest and Dick Tabery 
of Onited will address these two points in greater 
detai 1 . 

The curfew, particularly as it relates to the 
impact it would have on certain wide-body freighters will 
force operators into extremely disadvantageous time slots 
and cause delays and inefficiencies that will affect 



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16 



Bay Area manufacturers, growers, importers and 
exporter s . 

Pacific Rim freight departures must utilize 
late night time slots in order to reach Asian destinations 
in time to deliver perishable produce and time-sensitive 
cargo. As far as the maintenance base is concerned, the 
impact of this rule cannot be over estimated. 

Every single one of the almost 400 aircraft in 
the Onited fleet must pass through this brace at some 
point in time. It is not always possible to schedule 
these maintenance visits in conjunction with regularly 
scheduled revenue flights. 

Many thousands of employees rely on the steady 
flow of business into the base. This proposed rule, 
because of the proposed restrictions, would severely 
hamper Onited's ability to maintain their 7 27 and 737 
aircraft at the base. 

I want to point out particularly that we feel 
there have been some serious floss in the KEE Report. I 
would like to make available to the clerk something that 
is contained in the KEE Report. But just to highlight it: 
The report to Congress by the F.A.A. of the modernization 
of the aircraft fleet; you will note that we have scored 
in red the fact that the F.A.A. is predicting that 
the 727 100 and 727 200 fleet will decrease from its 1985 
total of 988 aircraft to 141 in the year 2005. 



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Yet KEE projects operations of these aircraft 
at San Francisco International to increase from 265 to 293 
per day, in tables 8 to 11. 

This is just not going to happen. 

If you look at the 737's, you will note that 
the 737 300 and its stretch versions to 400 and 500, 
according to the F.A.A. -- and I can assure you according 
to the airlines -- are being ordered and manufactured and 
procured as fast as possible. Yet the KEE Report notes 
that the 300 new 737 200's, the Stage 2 aircraft, 
operating at the number of 392 at San Francisco in 1985, 
is going to go to 134. That's the F.A.A. prediction. 

KEE predicts that these operations will 
increase from 221 to 246. And that's just not going to 
happen. There are two main reasons. 

The Stage 3 aircraft are much more fuel 
efficient in addition to being much quieter. They also 
have greater seating capacity to meet today's demand. 
After all, we're predicting over 600,000,000 passengers by 
the year 1992 as compared to the 450,000,000 we're 
handl ing today . 

In closing, I want to thank you for allowing 
me this little extra bit of time; but speaking for the 
airlines, we think that the proposed regulations do have 
adverse potential in terms of interstate and foreign 
commerce, the economic impact on the airlines serving 



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San Francisco, and the industry, and growers and shippers 
in this area. We think the regulation is unwise and it 
should not be adopted. Thank you very much. 

MB. BERNSTEIN: Thank you, Mr. Murphy. Any 



que stions ? 



De lta . 



MS. TSOUGARAKIS: No. 

MR. BERNSTEIN: Mr. Bary Slackman, also with 



MR. CHAMBERLIN: Commissioner Bernstein, 
members of the Commission, I'd like to introduce Delta 
Coordinator of Airport and Aircraft Noise Regulations, 
Barry Slakman . 

BAR£Y__£LAKMAN 

MR. SLAKMAN: Good morning, my name is 
Barry Slakman, and I represent Delta Airlines. One of my 
functions at Delta is the coordination of all aircraft and 
airport noise-related matters. 

MS. TSOUGARAKIS: Excuse me, would you lower 
the microphone, please. 

MR. SLAKMAN: Is that better? 

MR. TURPEN: Yes, thank you. 

MR. SLAKMAN: We at Delta have a deep, vested 
interest in the traveling public at San Francisco 
International, as evidenced by our 64 daily operations to 
ten cities and many more down-line connections. 



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Delta prides itself on being a good, quiet 
airport neighbor. We've met all our federal noise 
standards on and usually before the deadlines. 

Our fleetwide percentage of Stage 3 aircraft 
today is about 35 percent. We believe the most effective 
means to reduce airport noise is through aircraft source 
noi se re duct i on . 

Our continuing acquisition of new, quieter 
airplanes represents significant progress in this effort. 
Delta presently has on order new Stage 3 aircraft, 
representing an investment of over four billion dollars, 
to be delivered in the next five years, towards a quieter 
fleet . 

However, when delivered, these aircraft will 
only boost our Stage 3 percentage to almost 55 percent. 
We at Delta applaud this airport's efforts to further 
reduce airport noise, but what we are concerned about is 
that your method to get there may be contrary to our 
mutual goal of a quieter airport community. 

While Stage 3 criterions would represent a 
significant quieting of aircraft fleet, Stage 2 is the 
present federal standard, and it's a standard which many 
airlines are just now achieving. Key word here is the 
■federal standard." 

Without a uniform national objective, the 
airlines cannot rationally develop an aircraft acquisition 



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plan. The current situation of local noise standards 
adversely impacts the national air transportation system, 
and it impairs the airlines' capability to effectively 
schedule the aircraft. 

The proposal at hand accentuates these 
negative factors. Because San Francisco is an end point 
airport for both transcontinental and transoceanic 
flights, the negative factors of restrictive late-night 
hours and decreasing Stage 3 operations are magnified many 
t imes . 

We must continue to have the flexibility to 
schedule aircraft into the connected complexes here, which 
match the traveling public's needs. 

In other words, the airlines must be able to 
meet both the time demands and the traffic size demands of 
the traveling public. If both of these demands cannot be 
accomplished, then not only does the traveling public 
suffer but ultimately those in the airport community will 
suffer as well. 

By having the capability to schedule 
optimally, the airlines can maximize their revenues. And 
these revenues flow directly through to our ability to 
acquire new, quiet aircraft. 

The factors such as the San Francisco proposal 
degrade this capability and may postpone or possibly even 
cancel some of our planned new aircraft deliveries. That 



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21 



of course means less Stage 3 aircraft at Delta and more 
overall airport noise. 

We at Delta are not unique when it comes to 
this. Instead of noise abatement proposals which may 
become self-defeating, a preferred alternative would be 
for this Airport Commission to strongly support the 
legislative package now being developed by the F.A.A., to 
implement the initiatives in the report by the industry 
task force on aircraft noise and airport capacity which 
was submitted to F.A.A. administrator He Carter in early 
November . 

This report will create a rational framework 
for the airports, the airlines, and the federal government 
to abate airport noise. It would establish a national 
airport noise goal at Stage 3 and provide an incentive 
program for the airlines to comply at a date possibly as 
early as 1999 . 

It would provide a rational airline marketing 
environment, and it would provide additional funds to the 
airports for noise abatement. 

We are also concerned about the Stage 2 flight 
exclusions in your proposed regulation. We appreciate 
your need for granting waivers in the local rule, but 
suggest they only be granted when the requesting carriers 
have Stage 3 aircraft acquisition programs firmly in 
pi ace . 



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In summary, we at Delta share your desire to 
further reduce airport noise. To achieve this in the most 
effective manner and the least time requires a national 
air transportation system which will allow the airlines to 
match the aircraft flights to the marketplace demand. 

The program being developed by the P. A. A. 
right now, which sets a Stage 3 noise goal on a national 
level, will accomplish your local noise abatement goals. 
A localized Stage 3 rule will not. We ask you to redirect 
your excellent efforts towards substantive airport noise 
abatement and support this federal noise initiative. 

Thank you . 

MR. BERNSTEIN: Thank you. 

Miss Shelley Ressler of the San Mateo Labor 
Counc i 1 . 

SBELLEX_EESSLBE 

MS. KESSLER : Bi, I'm Shelley Ressler, I'm 
with the San Mateo Central Labor Council, and I'm also the 
Coordinator of the Airport Labor Coalition which 
represents the different workers that are out there at the 
airport. 

We appreciate the effort of the Commission to 
be sensitive to the concerns of the neighbors who live in 
that surrounding area by the airport. We also appreciate 
the fact that our people are working out there, and we 



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want to protect their jobs. 

We're trying to study the position papers and 
the regulations, to reach the best possible consensus 
among unions that are affected there. We received the 
information recently and have disseminated it to our 
unions that will be affected there at the airport. So 
what we're trying to do is reach a consensus so that we 
can best represent their viewpoints. 

We would appreciate the ability to testify at 
the hearing or at the next meeting, that's going to be in 
January, so that we can discuss more in depth the kinds of 
concerns that people have, and to have some kind of impact 
upon the decision that's made here. 

You have to be aware of the fact that when we 
have to get out this information to 78 locals and then 
wait for their response in order to best represent them, 
it can be an arduous task. So we appreciate the ability 
to come back next time and make any more clear and 
in-depth statements. 

Thank you. 

MR. BERNSTEIN: Thank you, Miss Kessler. 
Next, Mr. Dick Tabery of United Airlines, 
Vice-President of Maintenance Operations. 

BICE-I&BEBX 

MR. TABERY: Mr. President, my name is 



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Dick Tabery, I'm Senior Vice-President of Maintenance 
Operations for United Airlines and as such the person 
responsible for the San Francisco Maintenance Center, a 
place where we employ some 9000 people at a payroll of 
about $365,000,000. 

That doesn't include the 3500 or so people 
that work at the airport such as the pilots, in-flight 
attendants, station personnel and other. They generate 
about another $200,000,000. 

We have prepared a detailed set of 
recommendations and comments for the proposed legislation. 
You have those, and I respectfully request that they be 
submitted as a part of the record. 

I won't go into the details about that, but in 
summary, some of the statements. We would like to 
respectfully request that this proposed regulation either 
be withdrawn or at least be reconsidered, primarily with 
the help and aid of some of the expertise that we think 
the carriers such as ourselves could add, add to the data 
col lection . 

I'd like to say, and I think that the 
Commission is well aware, that United has been and 
continues to be a good, corporate citizen in the noise 
area throughout the system, throughout the country; and in 
that regard we have made many, many concessions, such as 
quieter aircraft and proposed new operating rules which 



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1 have been adopted in many locations. 

As we state in our formal comments, the 
proposed regulation, particularly sections 4-B, -C , -D, 
-F, -G and -B, we believe will cause great mischief with 
the transport system. 

€ You must consider that we are dealing with a 

7 very complex, interwoven national system. San Francisco 

8 is not only the maintenance nerve center for United, it is 

9 the northbound hub for United's operation. We have to 

10 route hundreds of airplanes in and out of San Francisco 

11 for the number of operations that we have, and of course 

12 for the input into the maintenance center. 

13 Let me highlight just a few of our concerns. 

14 First, we do not believe that the drafters of the 

15 regulation properly accumulated data, analyzed the data 

16 properly or sufficiently, or considered the impact of 

17 their recommendations in the national air transportation 

18 plan. In this respect we believe that any process looking 

19 to establish this type of regulation should bring the air 

20 carriers in at the lowest possible working level. 

21 Second, the drafters apparently did not 

22 consider that a Stage 2 - Stage 3 fleet mix does not 

23 consider the actual operations or noise emission of an 

24 aircraft. 

25 The rules that are being applied are actually 

26 certification data which i6 appropriate for design and 



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operational type of engineering purposes. But it's not 
good for local noise regulation. In short, it has nothing 
to do with the actual noise that particular flight will 
emit. 

Thirdly, the proposed regulation should 
impose, would impose, severe cost burdens on United which 
are not warranted by what we believe would be a very, very 
small potential gain. 

In 1997, as an example, the Stage 2 phase-out 
requirement alone would add about 2.4 billion dollars to 
Onited's fleet and to our future expenditure plan. 

Fourth, the proposed curfew would result in 
significant and costly schedule adjustments and flight 
cancellations ranging from as many as 15 daily in the 
winter schedule to as many as 20 in the summer schedule. 
Loss of revenues alone would range between between 2.5 
and 5 million dollars a month depending upon the season. 

The impact of a curfew on the commerce of the 
Bay Area has also apparently not been considered. When a 
curfew would be imposed, it would severely impact, of 
course, all of the communications regarding banking, 
postal, freight operations and some of which you've 
already heard this morning. 

Fifth, the proposed regulations would play 
havoc with Dnited's maintenance scheduling. Let me 
emphasize here that this does get into the critical issue 



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of safety -- "safety" being our number one priority — 
because wherever we have to perform the maintenance, it's 
going to have to be performed. 

The original draft of this regulation actually 
took no account of the need, however the second draft 
before you has solved part of the problem; but still it 
hasn't, for the simple reason that we would have to 
attempt to obtain exemptions in order to operate, 
particularly during the curfew hours. 

We have no full-time long-range assurance that 
such exemptions would be granted. So we may be in the 
same position that we're seeing ourselves in with this 
proposed regulation. Because what we would really have to 
do here is, very likely, using today's schedules and 
projecting it out into the '90's period, we see ourselves 
cancelling a 727, 737 maintenance check-line — which is 
one aircraft per night for very heavy maintenance, and as 
many as five daily over night- 1 ine service maintenance 
checks . 

That's an integration of our current schedules 
into what we think the curfew and nighttime noise limits 
would involve. 

If we did this, we would be approximately 180 
people shorter here in San Francisco. This work would 
have to be put elsewhere, but at great expense; because at 
the most, we'd have to schedule inefficient flights and 



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you'd have to vary the trips to the new locations. 

Finally, the regulation as it was 
mentioned earlier would result in banning of Onited's 
nighttime 747 operations at San Francisco, including 
the two new 747 400's we have just taken delivery on 
and 15 747 400's that are on order and will be delivered 
within the next four years. 

So, from this brief testimony, I must conclude 
that we do not think it is well considered or well 
advised, and it will have a very serious effect not only 
on air operations of Onited but United's maintenance 
operation as well. 

That's all the comments I have now. 

MB. TOFPEN: Thanks. 

MR. BERNSTEIN: Thank you Mr. Tabery. 

Mr. John Williams of Northwest Airlines. 

iQBH_E*_HILLiaMS 

MR. WILLIAMS: Good morning, my name is 
John E. Williams, and I'm Western Regional Sales Manager 
for Northwest Airlines here at San Francisco. 

Northwest Airlines currently operates 
seven 747 freighter frequencies per week into and out of 
San Francisco International Airport. Six out of seven of 
Northwest Airlines' 747 freighters scheduled departures 
from San Francisco are deployed at international 



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transportation between San Francisco and the Pacific Rim 
countries of Japan, Bong Kong, Korea and Taiwan. 

Northwest Airlines' current 747 freighter 
fleet mix consists of six 747 Stage 2 aircraft and two 747 
freighters Stage 3 aircraft. These eight 747 aircrafts 
operate into eight major O.S. cities and U.S. Customs 
districts, including San Francisco, and to six countries 
in the Pacific Rim countries and the People's Republic of 
China, crossing many time zones and the international date 
line. 

The shortest nonstop flying segment from 
San Francisco with the restricted payload is 10 hours 50 
minutes to Japan. These complex schedules crisscrossing 
thousands of miles require that all our aircraft in this 
fleet are interchangeable, to effectively meet the 
transportation requirements of the cities and surrounding 
areas involved as they participate in international trade. 

This makes it virtually impossible to schedule 
these aircraft departures in the proposed noise abatement 
guidelines in San Francisco without adversely curtailing 
services to the local economy, the country, and to 
international trade. 

The proposed noise abatement regulation 
affecting Stage 2 aircraft in 1989 would limit 
Northwest Airlines to aircraft available to operate into 
San Francisco during the specified time frames and 



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virtually bring to a bait our cargo operation with the 
first implementation of this curfew. 

Northwest Airlines' vast domestic and 
international operations would make it impossible to 
operate only the two Stage 3 aircraft into San Francisco 
due to the complexity of scheduling aircraft, aircraft 
flying hours, maintenance schedules, the time zone 
variations in both the domestic and international 
mar ketplace . 

To gain the time advantage offered by air 
freight for international import and export shipments, it 
is critical to San Francisco importers and exporters to 
operate through a window after midnight and before 7:00 
a.m. Operating outside these hours will cause delays of 
from 24 to 48 hours which are crucial in evaluating the 
cost and effectiveness of air freight or the competitive 
price on the fresh produce in international markets. 

Basically Northwest disagrees and opposes the 
noise abatement regulation. And if this is implemented, 
it would affect 97 people currently employed in the air 
freight office and 212 people on the ramp. 

Thank you. 

MR. BERNSTEIN: Thank you, Mr. Williams. 

Mr. Herbert Rosenthal of Washington, D.C., who 
is with the — What airway is that? 

MR. B. ROSENTBALx D.B.L. D.B.L. Airways. 



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MR. BERNSTEIN: D.B.I.? 

MR. FLEISBBLL: D.B.L. freight. 

BEBBEfiT.BQSEfilflaL 

MR. B. ROSENTBAL : Good morning, 
Mr. President, ray name is Berbert Rosenthal. I've come 
here from Washington, D.C. to tell you bow significant 
this noise rule would be to D.B.L. With me today are 
Jim Orr, our general counsel, and Mike Kirby, our manager 
of stat ions . 

If this rule is implemented, D.B.L. will have 
to leave this airport a year from now. We have no Stage 3 
aircraft. We don't think we contribute to noise with two 
operations a day five days a week. We take off on 
Runway 1, and we land on Runway 28. 

If we get thrown off the airport, no one in 
the airport neighborhood except those who are our 
customers or employees would know that we had to move. 
Then why do we care so much about staying in 
San Francisco? Why is it so important to us? 

In the domestic air express business, we're a 
small player, two to four percent; but with our agent 
abroad, D.B.L. International, our major interest is in the 
international air express service. We need to connect 
traffic picked up in our domestic system with the outbound 
flights going to Asia and the South Pacific there through 



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San Francisco. 

Thus, if I wanted to send an envelope to 
D.B.L. in Japan, courier would pick it up Monday night at 
my office, it would go to Cincinatti, where it would be 
sorted, it would arrive here on our 727 freighter at 6:00 
in the morning, and be put on a plane at about 8:00 in the 
morning, to go to Japan and be delivered Wednesday — it's 
one day extra because of the time zone — in the afternoon 
in Tokyo. 

If we can't make that connection, we can't 
provide that high quality service, which is what our 
shippers want. We also have our maintenance facility 
here. We have a hangar here, and it's the only place in 
our system that we do have a hangar. All of our Ill's 
rotate through San Francisco for their maintenance. 

By using San Francisco Airport, we can make 
pickups in downtown San Francisco as late as 6:30, getting 
important documents into our system for delivery the next 
morning throughout the United States. 

If we had to go to Oakland, we'd probably have 
to make our last pickups at 5:30. That extra hour is 
really significant for law firms, for banks, for other 
people who only get their materials done at the end of the 
day . 

Going to Oakland isn't going to help us, 
because only 20 percent of our traffic comes from the 



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reflect the needs of both the air cargo industry — which 
I don't think has presented itself as fully as it should 
have been until now — and also the needs of the air cargo 
industry and the smaller users for exemptions from both 
Stage 3 bases and nighttime curfews. 

Thank you. 

MB. BERNSTEIN: Thank you very much, 
Mr . Rosentha 1 . 

Next Mr. Vance Port of the Flying Tiger line. 

MR. FORT: Good morning. My name is 
Vance Fort, and I'm Vice-President International and 
Government Affairs for the Flying Tiger line, the world's 
largest all cargo carrier and the largest all cargo 
freight carrier at San Francisco International Airport. 

With me today is Bill Rose, our manager world 
wide for flight operations. 

Ontil a couple of months ago I served as 
Deputy Assistant Secretary in the office of the Secretary 
of Onited States Department of Transportation, and in that 
position, as in this position, I dealt with on a daily 
basis the very serious problems of noise pollution. 

Let us state up front that we believe we are 
as against noise pollution as is this Commission and the 
residents of this city. Perhaps even more germane is the 



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fact that I grew up about two blocks from here, and ny 
family still lives here. I consider San Francisco my 
hone, and always will. 

We're very concerned about noise. As I said, 
I think it's not — I have no intention of understating 
noise, to this community or to other communities, local, 
national, and international, nor will I exaggerate the 
adverse consequences if this proposal is permitted to go 
into effect. It will not end air freight transportation 
at San Francisco, it will not bankrupt my company. 

What it will do, and on this I'm quite 
serious, is reduce San Francisco to a second-class or 
third-class air freight transportation gateway. Air 
freight transportation at San Francisco, moving in both 
interstate and foreign commerce, will be severely 
restrained. 

These proposed regulations dramatically 
diminish the ability of our planes, even though most of 
them are Stage 3, to operate during the critical nighttime 
period for air cargo. As has been said earlier, the 
regulation would have the ironic, indeed even perverse 
effect of barring some of our nation's best technology 
from nighttime operation, which has been said repeatedly 
here, is critical for air cargo operations. 

Flying Tigers currently employs 340 people to 
run our operations at the San Francisco International 



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Airport. These people, their jobs, are dependent upon our 
ability to operate efficiently in and out of the airport. 

Additionally, we currently pay over $800,000 
in rentals for the use of the airport facility. Prom 
January 1 to just October of this year. Flying Tigers paid 
over $400,000 in landing fees. 

Most importantly, during that same period, the 
Flying Tiger line lifted over 87,000,000 pounds of air 
freight, including both inbound and outbound carriers. In 
short, we're a major player at the San Francisco Airport 
and in the Bay Area. 

It's impossible to forecast with any precision 
the effect the proposed noise regulations would have on 
our Bay Area air cargo operation. If these regulations 
and proposed regulations are inacted, however, I'm sure 
that the Flying Tiger line and other carriers similarly 
situated will be forced into having to consider alternate 
locations for their air freight operation. 

In light of its strategic position, 
San Francisco enjoys a gateway to international trade, 
especially in the Pacific Rim. It seems unfortunate that 
you are considering the promulgation of rules which would 
hamper the City's development and future attractiveness to 
b u 8 i ne s s . 

San Francisco now enjoys direct access to air 
freight, to an air freight transportation system, that 



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frankly is second to none. 

Modern 747 aircraft fly directly from that 
San Francisco Airport to markets in Asia and in Europe. 
That network has played an important role in the 
development and expansion of a number of high-tech 
industries which are now closely identified with the 
Bay Area . 

These are some of our nation's most effective, 
most successful and most competitive companies. And their 
ability to continue to provide that competitive spur is 
based on, is premised on, a marketing and distribution 
strategy that requires effective air freight 
tr anspor tation . 

As an indication of the scope of these 
operations, that are propelled largely by these 
businesses, the growth of air freight over the last year 
has been over 30 percent in terms of total U.S. exports. 
In 1986 alone the value of those airborne U.S. exports was 
over 63 billion dollars. 

These industries show every sign of continued 
growth; the only question is, where will they be located? 
In San Francisco? Or in Phoenix? Or in Portland? Or 
other attractive and growing communities? 

I submit that if this proposed rule is 
inacted, a substantial number of residents could face 
employment dislocation, and many of San Francisco 



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businesses would have their options severely limited to 
the detriment of the City's economy. 

3 Put bluntly, the proposed rule will force many 

4 of San Francisco's current freighter services to other 

5 gateways. For Bay Area shippers — and this is 

6 critical -- this will mean a more attenuated connection 

7 with world markets, perhaps abated transportation times, 

8 increasing transportation costs, as well as the risk of 

9 damage or loss of goods in transit. 

10 The long-term consequences of this kind of 

11 surface deterioration would be quite pronounced on the 

12 City's employment and commerce. I urge you to withdraw 

13 and carefully reexamine the premise on which the proposed 

14 noise abatement regulation is based. 

15 The Flying Tiger line would be happy to meet 

16 with you and your staff and to provide you with any 

17 information that you feel helpful. In this regard, I can 

18 only say that we have been involved with people such as 

19 yourself considering this very important concern, noise 

20 abatement, with communities -- local, state and 

21 international communities world wide. We have been very 

22 successful and very cooperative in these engagements. 

23 We do sincerely offer ourselves to you as you 

24 consider this rule in the future. With your indulgence, I 

25 would like to just ask if you would give Mr. Rose just a 

26 minute to provide an insight into some of the more 



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surrounding population due to its location, yet it is 
proposing some of the most restrictive noise regulations 
of all international airports. 

I suggest that there are a lot more productive 
ways to approach noise control and noise pollution, and I 
feel that it is about time that we get together and work 
on this, for the benefit of the local residents, the 
airport, and the airlines. Once again, I offer our 
services . 

Thank you. 

MF. BERNSTEIN: Thank you. 

Next, Mr. Duane Spence, of the Billsborough 
Homeowners' Association. 

DflafiE-SEEflCE 

MB. SPENCE: Good morning, Mr. President, 
Commission members. I'm Duane Spence, and this morning 
I'm representing Citizens of the San Mateo Communities 
that involve not only Billsborough but San Mateo, 
Burlingaroe, Milbrae, San Bruno, South San Francisco and 
Daly City. 

I'd like to once again express our gratitude 
to you for your stand against the Burlington Q-707 
operation at the airport. We feel you are 100 percent 
correct in your stand, and we urge you to continue to ban 
that particular operation. 



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We wholeheartedly support your adoption of an 
effective noise regulation at the airport. Our comments 
have been forwarded to your staff, and we hope those 
comments will be included in your final draft. We believe 
the noise regulations to be beneficial to all the 
communities without regard to the particular type of noise 
they e xper ience . 

As you are well aware, there are at least 
three types of noise that we deal with, overflight noise 
from approaches, backblast noise from departures, and 
overflight noise in departures. 

This noise regulation as proposed, we feel, 
will deal very effectively on a community wide basis with 
all those aspects of the noise. We also urge its swift 
implementation, from this aspect: The national fleet mix 
of Stage 3 aircraft is something like 26 percent; the 
fleet mix in San Francisco Airport is on the order of 42 
per cent . 

The only way that that can be accomplished 
is by a repositioning of the quieter aircraft to 
San Francisco for one reason or another. The early phases 
of your noise regulation will be accomplished by the 
airlines repositioning more of of their quieter aircraft 
to San Francisco. 

If the adoption is delayed or the 
implementation of tightening the restrictions is delayed, 



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we feel that that repositioning night not be possible at 
San Francisco, because other airports will have the 
opportunity to step in with earlier regulations that could 
disrupt the implementation here in San Francisco. 

The timing of these phases involves both the 
Stage 3 implementation during the critical nighttime noise 
sensitive hours and also the fleet mix itself. The 
aspects that we feel are being addressed are the fact that 
the fleet mix will be demanded to be changed to a higher 
and higher percentage of Stage 3. 

We also endorse the adoption of a maximum 
noise limit, because this will also preclude the fact that 
a Stage 3 airplane might also have a very high noise level 
and a deleterious effect on the community. 

So far this morning we've heard quite a bit 
about costs of doing business at San Francisco Airport. 
As you are well aware, the costs of doing business there 
must include fuel, landing fees, gate fees, maintenance 
and whatever . 

By your adoption of these regulations, we feel 
you are showing you are well aware, also, that the cost of 
doing business there must include the effects. on the 
community surrounding the airport. I think I'll conclude 
my remarks there, and I can answer questions if you have 
them. 

MR. FLEISBELL: I have nothing. 



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MR. BERNSTEIN: Thank you. We should have bad 
you as the lead-off batter . 

Mr. Jerry Nelson, please. Air Transport 
Employees Local 1781. Mr. Nelson? 

iE££X_UELSQfl 

MR. NELSON: Good morning, President Bernstein 
and Commissioners. My name is Jerry Nelson, and I'm the 
President of Local 17 81 of the International Association 
of Machinists and Aerospace Workers. 

In that local we represent over 9000 of the 
ground service workers at the international airport. We 
must stress that those airlines we represent are Eastern, 
Northwest, and Onited Airlines primarily. 

As a labor union, our goal is to assist in 
creating a stable work environment for those members that 
we represent. This proposed noise regulation that you 
have before you today, as has been stated earlier by 
Shelley Kessler from the San Mateo Central Labor Council, 
is something of first impression to us. We are studying 
it very d il igent ly . 

But we feel it necessary to explain today that 
we are part of an airport community, a community that is 
comprised both of management and of workers. We are 
extremely concerned with the impact this regulation will 
have on the workers we represent. 



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You've beard figures stated here this morning 
of 180 at Onited Airlines, over 300 at Northwest. This 
concerns us. It concerns us from us from the perspective 
that it is a regulation that has not been studied 
sufficiently, in our opinion, it has not had as broad an 
input from the community. 

I stress, the community of neighbors, and that 
community that is comprised of the airport industry, 
living and serving at the international airport, we would 
hope that this Commission will diligently look at this 
regulation, and give us an opportunity to come back here 
in January, and to present a more detailed presentation 
reflecting the desires of those more than 9000 members 
both working and living very close to that airport. 

Thank you very much. 

MR. BERNSTEIN: Thank you, Mr. Nelson. 

MR. FLEISBELL: Thank you. 

MR. BERNSTEIN: Mr. David Carbone, the City of 
South San Francisco, on the noise regulation. 

B&YIB-C&BBQHE 

MR. CARBONE: Good morning, Mr. President, 
members of the Commission. My name is David Carbone, an 
Associate Planner of the City of South San Francisco. 

I'd like to just echo the comments you heard a 
few minutes ago from Mr. Spence from the Billsborough 



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Bomeowners' Association and also the resolution of tbe 
San Mateo County Board of Supervisors in supporting your 
proposed noise regulation. 

The City of South San Francisco is supportive 
of the regulation as proposed. We do have a couple of 
concerns about some of the implementation. We've passed 
some of the written comments to Mr. Turpen in that regard. 

A couple of key elements I'd like to mention 
to you regarding that particular aspect of the regulation. 
The only concerns we have is how the regulation is related 
to the proposed "forecast of operations" as we have seen 
in the first working paper of the Master Plan project. 
The regulation doesn't — 

We don't see a real connection between a 
master plan and the regulation as currently proposed, and 
we'd like to have a little bit more clarification on that 
aspect of it. There are some major numbers that are 
proposed in the Master Plan document that could have some 
significant impacts on the noise environment around tbe 
airport in the coming years. 

Second of all, the proposed regulation doesn't 
really state its objective, what is the regulation trying 
to achieve, as far as an end stage or a goal, as far 
as 100 percent Stage 3 airport, or reducing the noise 
impacted area, et cetera. It's not clear as to what tbe 
desired result is from the regulation itself. 



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The third point we would like to make is that 
the Airport Commission should try to ensure that the 65 
standing C.N.E.L. Contour should stabilize and not grow 
any larger than it currently is. Given the fact that 
there are some large numbers forecast for future operation 
at the airport, we're concerned that the 65 C.N.E.L. 
Contour standards required by the State will not get any 
larger than it already is. 

MR. FLEISHELL: I didn't hear your last 
comment . 

MR. CARBONE: The 65 C.N.E.L. Contour. We're 
concerned that based upon some of the forecast numbers in 
the operations, as in the Master Plan program, that that 
contour will enlarge around the airport -- rather than 
decrease . 

The idea here is through another regulation we 
presume that that contour gets smaller or remains where it 
is. We don't want to see it get any larger than it 
current ly is . 

One other comment I'd like to make regarding 
some of the prior speakers is that I think one or two or 
maybe three of them mentioned that the airport has a 
relatively small noise impact area, compared to other 
airports around the country. 

I'm not familiar with the particular other 
airports, but if that is in fact the situation, I'd like 



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to point out, though, just because it may be a smaller 
impact area, we're not any less impacted than those other 
communities across the country. 

That's all I have to say. Thank you. 

MP. TORPEN: Thank you. 

MB. BERNSTEIN: Thank you. 

Mr. Roger Chinn of the Round Table. 

EQSEB_CflIHB 

MR. CHINN: Mr. President, Members of the 
Commission, my name is Roger Chinn, I'm Chairman of the 
Round Table of the Airport in the communities in 
San Mateo County. I would like to ask that the letter I 
had written to the President dated December the 10th and 
that the two enclosures be included in the record. 

As I indicated on the letter of December 10th, 
it's quite important that this new noise regulation be 
implemented. We feel that there are many points that are 
indicated on the new noise regulation that have been 
worked on by not only your staff but the County, which 
will implement a lot of the noise problems that have been 
occuring for some sometime. 

From my letter to the President, I would like 
to Indicate that the Round Table, which consists of nine 
cities in San Mateo County, as well as representative from 
your City and County, as well as the Airport, have 



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unanimously voted to support the noise regulations. I'd 
like to read from my letter briefly some of the points 
that should be indicated at this time. 

If this new noise regulation is adopted and in 
force, it will go a long way towards reducing the noise 
impact on not only the people in the San Mateo County but 
on the City and County of San Francisco. 

The regulation is consistent with the goals of 
the Bound Table, its number of jurisdictions, and many 
neighboring residents who have sought relief from the 
airport related noise over the years. I'd like to 
indicate at this time, we've been working with your staff 
for eight years on a number of issues, and I think this 
new noise regulation is certainly a very moderate position 
to be in, to inact. 

Enclosed with my letter of December 10th are 
two enclosures, and those two enclosures were developed by 
our consultant to the Round Table, as well as by the 
residents of San Mateo County. We ask that you consider 
the points that were made in those two enclosures, 
specifically the time table for implementation. 

We feel that the time tables are reasonable 
and important to making sure that we do implement these 
new noise regulation. 

I'd like to conclude this by saying that we 
would commend and thank the Commission and the staff for 



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initiating and supporting these measures which address tbe 
persistent, increasing problems of noise impacted on tbe 
airport's neighbors. 

Again I would like to indicate that the 
neighbors include not only the people in San Mateo County 
but the people that reside in the City and County of 
San Francisco. To that point I would add that I, as the 
Chairman of the Round Table, will be inviting your new 
Noise Abatement Committee of San Francisco to our 
meetings, and hopefully we can incorporate their thinking 
into ours in the future. 

Thank you. 

MR. TORPEN: Thank you. 

MR. BERNSTEIN: Thank you, Mr. Chinn. 

MR. TORPEN: Prior to your concluding the 
public hearing, Mr. President, I'd like the public record 
to indicate that the Federal Aviation Administration did 
not submit comments on the Commission's November 6th, 1987 
proposed noise regulation. As well, the F.A.A. did not 
participate at this public hearing. 

The Commission should also be aware that: 
The proposed regulation and the supporting statement were 
hand-served on the F.A.A. '6 legal counsel on November 6th, 
1987; the F.A.A. was also provided at their request 
documents contained in the administrative record; 
additionally, counsel to the Commission on three separate 



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occasions notified the F.A.A.'s chief counsel's office on 
the extended December 11th deadline for written consents 
and of this public hearing. 

DR. GOOSBY: I just had a question in regard 
to that. 

Essentially are you saying, Lou, that most of 
the airlines and the labor council for the San Mateo 
Airport Workers council, everybody received that about 
the 6th of November? This final draft of the regulation? 

Bow long — 

MR. TORPEN: Possibly with one exception yes, 
sir, everyone did. 

DR. GOOSBY: But they were generally available 
sometime then around the 10th, say, of November? From 
the 10th of November on? 

MR. TORPEN: Yes. 

DR. GOOSBY: All right. 

MR. TORPEN: I would suggest, Mr. President, 
that we declare the public hearing closed and -- 

MR. FLEISHELL: The members of the Commission 
may have some comments. 

B&LEfi-BILL 
MR. DILL: Before you do, my name is 
Ralph Dill. I represent the Air Transport Association. I 
find Mr. Turpen's comments about the F.A.A. confusing, 



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1 because I've been provided with a copy of the F.A.A.'s 

comments to this Commission dated December 11, 1987. The 
letter went to Mr. Turpen. Perhaps he hasn't received it 
yet. 

5 I have some extra copies, and I'd like to band 

6 them to the Clerk at this time. 

7 MR. S. ROSENTHAL: Well, wait a second. 

8 MR. TORPEN: Just a moment, please. 

9 MR. DILL: These were made publicly available 

10 to me on December 11th. 

11 MR. TORPEN: I think that in this case, if in 

12 fact that information was sent to me, then I will receive 

13 it in due course. I think to receive it from a third 

14 party at this point would not be appropriate. 

15 DR. GOOSBY: Well, if he wants to pass it 

16 out — 

17 MR. FLEISBELL: Why not? 

18 DR. GOOSBY: — we can look at it. Officially 

19 you haven't received it; but anytime anybody wants to 

20 offer me, as a citizen, a document — 

21 MR. TORPEN: Well, I think at this point it 

22 would probably be better for me to transmit to the 

23 Airports Commission those official comments received from 

24 the F.A.A. 

25 I'm sure these are probably the same comments, 

26 but I think our advice is that communications to the 



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Commission should come from my office. Or from the 
P. A. A., through my office. 

If you'd like to address counsel on it — 

MR. FLEISBELL: Well, I speak for myself. 

MB. BERNSTEIN: Sure. 

MR. FLEISBELL: I have no quarrel about 
whether it's sent to me from you or anyone else. I don't 
understand why you had to make this statement that the 
F.A.A. has not responded. 

So, if there is some careful legal maneuvering 
planned that I'm not aware of, I must say that I think in 
fairness, if the F.A.A. has sent out this, the record 
should include those labor documents, if these arrive. 

MR. TORPEN: I have no problem with that. 

MR. FLEISBELL: We're not playing games, just 
trying to do the best job we know how. 

MR. TORPEN: If in fact those comments were 
rece ived , we will. 

DR. GOOSBY: Is there some legal reason why be 
doesn't want us to get the document as hand-delivered? I 
don't like the tone of refusing to accept any document 
from a citizen — 

MR. BERNSTEIN: Would this jeopardize our 
position or their position? 

MR. S. ROSENTBAL: Well, let me just say that 
my only concern is that of natural reluctance. I'm sure 



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these are the right coanents, but I think we're going to 
have to independently confirm that from the F.A.A., and 
get the comments from the F.A.A. 

DR. GOOSBY: Well, we can read that — 

MR. BERNSTEIN: I would think at our age and 
experience we ought to know whether we accept service or 
not . 

Would you pass them on, please. 

DR. GOOSBY: The other thing, you had some 
questions? 

MR. FLEISBELL: Well, you had some. 

DR. GOOSBY: I'll wait for yours. 

MR. FLEISBELL: Thank you. 

MR. BERNSTEIN: Thank you. 

MR. FLEISBELL: I had the pleasure to serve on 
the Joint Powers Authority in 1979 which created the 
Round Table. We contributed over $500,000 I think for a 
three-year study to try to get some help on how we should 
proceed . 

At that time a report was prepared — and I 
think someone referred to it. I spent Sunday and 
yesterday from 7:00 o'clock until exactly 2:30 reading 
again every piece of material submitted, so I was pleased 
there were several great presentations. I must say, some 
copied presentations of other people — and they really 
shouldn't do that, because we read what you submit to us. 



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One of the concerns I had when we originally 
put it out in the report — eight years ago I guess it is 
now, 1981 — we took certain steps, and we were going to 
take certain steps in the future. This is a part of that 
future. And I've been sitting here waiting to hear the 
other side of the coin. 

In other words, the report says we will take 
steps and always balance the economic hardships against 
the gains that would be derived from taking whatever 
action we take. I've been waiting to hear that. 

I'd direct my comments to everyone in the 
audience and also to the staff, because if we're going to 
do something this drastic, we at least ought to know what 
the results are. This is not just my view, it's the view 
of several City Attorneys down the Peninsula who certainly 
are in favor of these regulations. 

They want to know what is our goal. Is our 
goal to reduce noise? Is it to bar specific types of 
aircraft from the airport? In that connection, as I've 
listened and tried to recall, I have some questions that I 
was kind of looking for answers to, and I haven't gotten 
then yet. 

These processes roll along, and pretty soon 
you find yourself voting when you don't have adequate 
information . 

These are the things I wish some of you would 



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address. This cost benefit. I remember — 

And bear in mind we took the first steps to 
reduce noise at that airport. I spent a lot of nights at 
a lot of meetings down there, as did staff and the former 
Director also. We met with every citizen, we hired 
consultants, we did everything possible to get the best 
informational base that we could get. 

But one thing impressed me at the time, we 
heard great outcries from Silicon Valley; companies that 
were going to have to move out of the state, as a matter 
of fact, if we impose this curfew. 

I haven't heard from those people. The 
lettuce growers from Salinas came. Now, they have a 
one-day product that has to get to the market in the 
Orient. 

And we've heard all about our trade balance 
and how we're trying to do things and convince the 
Japanese to buy our produce. 

I think that aspect has to be looked at. I 
think the flower industry — which is another industry 
that has to meet the market in the East Coast as well as 
ship flowers back there — I'd like to hear about that. 

That ties in with the whole concept of: What 
jobs are we going to jeopardize? If somebody's going to 
lose their job, sometimes that's necessary to give a 
greater benefit to a greater group. 



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I think we've got to know: What are the plus 
sides of this? What are the down sides? The small jet 
airplane . 

We have copied essentially the language in our 
earlier noise regulation of the P. A. A., if they exempt 
anything under a thousand pounds. 

Well, we found with the back one eleven we 
were suddenly in a Mickey Mouse trap. They hired a former 
F.A.A. administrator, who came out and pointed out if 
we cut the fuel down and take six seats out, it's 
under 74,000 and therefore it gets to fly in. 

I think if I lived down there, and I do live 
here, a small jet taking off over my bouse makes as much 
noise as a big jet. And I don't know why, if we're 
talking about reducing noise, they are not involved in 
this regulation. 

The only argument I've ever heard in the nine 
years I've been here is that, well, they're such a small 
problem. Well, the one freight carrier, D.B.L., is a 
small problem. There are several small problems. When 
you add the small problems together, that's what causes 
the session we're having here. 

I'm concerned also that the regulations as 
presently drafted would bar the latest technology 
presently available to the airlines. That's kind of wild. 
I'd like some more information on that. 



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Ne have a requirement down tbe line that we 
end up, in I think it's 99 decibels. I'd like to know if 
there's any aircraft manufactured today that today 
complied with that. I'm kind of curious. 

If in fact, as some of you folks have told tbe 
Commission, that there are many Stage 2 aircraft that are 
less noisy than Stage 3, I again come back to tbe 
question: Are we trying to bar classes or types of 
aircraft? Or are we trying to deal with noise? 

And if we're dealing with noise, I'd like a 
logical and maybe a legal justification for barring tbe 
Stage 2 aircraft that is less noisy than a Stage 3. There 
may be good reasons. I won't say I'm technically 
competent. I'd like somebody who is competent to tell ne 
that. 

Another reason is I want to adopt a regulation 
that will pass tbe judicial test of reasonableness and not 
be an interference with interstate commerce. I think 
these are some of the concerns. 

One other concern I have is the language of 
the agreement. I appreciate airlines writing and trade 
associations writing. But the thing that really got to me 
was a letter that said we were in heavy trouble because 
tbey couldn't ship any mail in and out of here. That 
letter bothered me. 

I'd like to know if the federal exemption in 



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the statute would apply to subcontractors of federal and 
state agencies, because they do subcontract all their work 
out. 

Also the one gentleman was talking about noise 
contour. It would be kind of interesting to see — 
everyone makes all these estimates, all our consultants on 
top of consultants — it would be interesting to see what 
the result of the noise contour would be if we did all 
these things, and what it would be if we didn't, with the 
normal transition of Stage 2 and 3 and the intended growth 
of the airline industry. 

Other than that ... . 
(Audience laughs.) 

MS. TSOOGARAKIS : You missed one. I've got 
one you missed. 

MR. FLEISBELL: But as I say, I read it all. 
There were several very well-done presentations. I won't 
embarrass the others by naming them, but I was impressed 
by several of the presentations. 

Thank you, Mr. Chairman, for your time. 
DR. GOOSBY : I just had a review of several of 
the comments that Mr. Fleishell made, and I'd also like to 
express that it's unfortunate that this aegis has to be 
considered under the onus of a suit being filed against us 
by Burlington. 

I think it's important enough for the future 



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of the Bay Area, and from the sound of the industry 
representatives, in the industry, and from the sound of 
the workers working in the industry, it's important that 
it should be considered — as impartially and objectively 
as we can — to try to do the right thing to represent, as 
a Commission, both points of view, in an even balance and 
an even-handed result, if that's possible. 

But if not, at least be prepared on the basis 
ot looking into many of the points raised by staff in 
proposing the regulation, the industry, and concerns of 
the Commission. At least trying to take the beat for 
making a decision based upon the greater good for the 
greater number, and so forth and so on. 

So it's not an easy task that we have. I want 
to thank the industry for showing up, in the numbers that 
they have, and taking the serious position that they've 
taken on this. Its always helpful for any Board or 
Commission to have input from both sides, so that they can 
try to weigh what they're given by the staff. This is 
true of any governmental agency. 

I have some concerns that Mr. Fleisbell 
mentioned. I just wanted, other than, to ask if the 
interspace airport association has ever presented — as I 
take it they represent a large number of carriers — If 
they've ever attempted to present their points to the 
Round Table in San Mateo County, or perhaps to a 



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representative group representing the Boards of 
Supervisors of the various cities of the Peninsula, the 
point of view of the airline; so that you give them some 
of the flavor of what you've given U6 today, so that 
they're not operating in a vacuum. You'll sake their 
decision a little more difficult too. 

Also, if our Board of Supervisors has been 
given any statement that they made a representative, I 
don't think you should send them this stack of stuff we 
got. Because they're not going to read it. 

But the representative of the industry and our 
Board of Supervisors, and I assume the Airport's Transport 
Association might be such a vehicle. Or you may have a 
couple of them. To let them also know of the difficulty 
and the various facets and factors involved in this 
decision . 

Then finally, just to address the — I was 
very concerned when I heard from United Airlines. I 
thought we had built into the regulation the maintenance 
exemptions. I think that's critical and crucial, that 
they are there for whatever airline does their maintenance 
heze, who may not be approved for flying into 
San Francisco but they're going to have to come in here to 
get their planes maintained properly. 

I think the point was made about the 
exemptions; will they be granted? That you can apply for 



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an exemption . 

But when you're dealing with that kind of 
money, are you going to put out that kind of money for 
those aircraft, if you're not sure you're going to get the 
exemption? Even though you don't come in here on a 
regular basis? 

I thought it was spelled out in there quite 
well, as I read the regulation. I think that language 
needs to be cleaned up or corrected or whatever so that 
that fear is allayed. 

But those are the concerns we have. I think 
you can see that there will be considerable thought and 
discussion by this commission on this whole thing before 
it's passed . 

MR. FLEISBELL: I have one further. 

Go ahead, Athena. 

MS. TSOOGARAKIS: Go ahead. 

MR. FLEISBELL: I just had one further thought 
that was raised by one of the airlines and I believe by 
the airline association, this 3000 mile limitation on the 
exemption. I just wonder why it's 3000 miles. 

Because first of all if we're talking about 
noise, it would be better to have it a thousand miles, 
because you carry less fuel and therefore less thrust, 
therefore less noise. 

We want to make sure that we don't arbitrarily 



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pick a number that, as one writer suggested, could tailor 
in one particular airline. We're not writing regulations 
for any particular airline. 

We want to make certain that we do not, by 
choosing a number like that, knock out I think it was 
Northwestern that lands at Anchorage which is not 3000 
miles away. So I'd like that reviewed as well, if I 
could . 

That concludes my comment. 

MS. TSOOGAFAFIS: I bad just a couple of 
things. What I don't know is, is there an effort going on 
at the National Air Transportation, some resolution to the 
National Air Transportation system? I would kind of like 
to know what the effort is underway for that. And does 
that include their taking on the lawsuits on the basis of 
the noise problems? 

I would like to see the union comments 
included. Also I'm interested in a tie to the 
Master Plan, you know, as we get the implication to the 
Master Plan, and perhaps a little bit more on the basis of 
the exemptions . 

SflELLBX-KEfiSLEB 

MS. KESSLER : Based on those comments, I'd 
like to ask for some information. I know know that to 
expedite this process you asked for comments to be in by a 



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certain date. But as I expressed earlier, it's difficult 
to bring in all the comments of these different people. 
It's the largest employer. There's 30,000 people out 
there. And we represent a good portion of then. 

Would the Commissioner be willing to accept 

6 comments after today's date, from the unions and the 

7 working people that are involved in this? 
6 DR. GOOSBY: Oh, yes. Yes. 

9 MB. BERNSTEIN: Yes. 

10 MR. FLEISBELL: Absolutely, yes. 

11 MS. KESSLER: Thank you. 
12 

13 MQtfXE_L£ZfiBUS 

14 MR. LAZAROS: Mr. President, I'm 

15 Monte Lazarus from United Airlines. In response to the 

16 question about what's happening at the national level, I 

17 am a member of the task force which has been appointed by 

18 the F.A.A. Its a task force consisting of airport 

19 operators, two trade associations and air carriers. 

20 We have been working with the help of the 

21 F.A.A. on developing a national plan for the phase-out of 

22 the so-called Stage 2 aircraft and moving as rapidly as we 

23 can to involve Stage 3. The program is moving ahead, it 

24 involves many pieces. It's very complex. 

25 I'm leaving here tomorrow to go back to what 

26 we hope is a final meeting in Washington on Thursday, and 



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sometime right after the beginning of the year we hope 
that we will be able to present final plans to the 
curriers and to all the airport operators through the 
A. O.C.I, and then to the Administrator of the F.A.A. Be 
has already seen our first cut at this. 

So we are moving as rapidly as we can, and we 

7 hope to have our work completed this Thursday; if not, 

8 shortly after that. 

9 MS. TSOOGARAKIS: Well, when do you plan to 

10 publish something? What's your — 

11 TBE WITNESS: We plan to publish early next 

12 year, if we can get our group in consensus this Thursday. 

13 MR. BERNSTEIN: Thank you. 

14 I think we ought to call the public bearing 

15 closed until we have the next public hearing on additional 

16 items. Otherwise we'll be here all day on the same 

17 subject. 

IB MR. TORPEN: Thank you. 

19 MR. BERNSTEIN: I have some things, but I 

20 think in view of the legal implications and all the other 

21 little delightful items that went into this, I've got to 

22 keep quiet until such time as I know sore about the 

23 subject and I've come to some definite conclusion. 

24 So the public meeting is closed. 

25 MR. FLEISBELLx We adjourn it. 

26 MR. TORPEN: Ladies and gentlemen, the 



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Airports Conmi ssion will be going into a closed session to 
discuss aatters with legal counsel. 

I thank you for your attendance and your 
comments. Would you please excuse yourselves so that the 
Commission can go into closed session. Thank you. 

(Proceedings concluded at 10:40 a.m.) 

0O0 



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STATE OF CALIFORNIA 



COONTY OF ALAMEDA 



BS . 



I, the undersigned, a Notary Public of the 
State of California, hereby certify that the foregoing 
Public Bearing was taken at the time and place therein 
stated; that the proceedings of said Public Bearing were 
reported by me, a Certified Shorthand Reporter and 
disinterested person, and were thereafter transcribed 
under my direction into typewriting; that the foregoing is 
a full, complete and true record of said Public Bearing. 

I further certify that I am not of counsel or 
attorney for either or any of the parties to the foregoing 
Public Bearing, nor an I in any way interested in the 
outcome of the cause named in said caption. 



IN WITNESS WBEREOF, I have hereunto set my 
hand and affixed my seal this 22nd day of December 1987. 



p Hwwwim i minBnwnui iwuMUMiiiinwmiiB 

^Cj>. OFFICIAL SEAL 

v CHARLOTTE CERVANTEZ 

ij NOTARY PUBLIC CALIFORNIA 
COUNTY OF ALAMEDA 

S S ^&& / Wf Gommmwi Lxpires Iter 14, 1991 




L^CBTNRLOTTE CEWtfNTBZ, CSR K4 86 
Notary Public, State of California 



Bay area Court Reporters 



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Maywvt). C* 04541 



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